Huawei Consumer Business Group Announces 1H 2015 Financial Performance

Impressive overall revenue growth of 69% Strategy proves successful with 87% Y-o-Y revenue growth of handset business

[Shenzhen, China, July 22, 2015] Huawei, a leading global information and communications technology (ICT) solutions provider, today announced the business performance of its Consumer Business Group (BG) for the first half of 2015. Huawei Consumer BG continued to record remarkable business growth in 1H 2015 with the total revenue reaching a total of USD 9.09 billion, showing an impressive year-on-year increase of 69%. The unit's sales income represented 32% of the total income of parent company Huawei Technologies, up from 24% in the same period last year. Huawei's handset business revenue reached USD 7.23 billion in 1H 2015, recording a year-on-year increase of 87%. This was due to the success of Huawei Consumer BG's strategy of focusing on mid-to high-end handsets, which contributed to both the increase in shipments and average selling price.

"This incredible growth is a testament to our core business strategy to offer premium quality products, bringing our expected earnings for 2015 from USD 16 billion to USD 20 billion." said Mr. Richard Yu, CEO of Huawei Consumer BG. "Such a remarkable and rapid growth in performance is a result of Huawei's Consumer BG's commitment to consumers' needs and our core strategy of providing innovative hardware technology and software experience. With our consistent and huge investment in R&D, Huawei is set to become one of the key players in the long-run."

Huawei's smartphone shipment outperformed the market

In 1H 2015, Huawei Consumer BG shipped a total of 48.2 million smartphones, representing a year-on-year increase of 39%, while global smartphone demand has only recorded a 7% growth in the same period1. Shipment for the mid-to-high end category recorded a year-on-year increase of 70%, representing 31% of the total handset shipment and 42.9% of total income. The income of the mid-to-high end category increases 388% while the profit of this category representing 44% of the total profit.

Rapid revenue growth in regions around the world

Huawei's global strategy continues to stimulate stable business growth in both China and overseas markets. Revenue surged 124% year-on-year in China, while some regions recorded more than 40% revenue growth. Western Europe, Northeast Europe, South Pacific, North Africa and Middle East recorded 45%, 54%, 41%, 164 % and 48% year-on-year growth respectively. Huawei's high-end smartphone shipment in Italy and Spain achieved year-on-year growth of 293% and 448% respectively. According to GFK2, Huawei's share of the global smartphone market continued to increase throughout the first quarter of 2015, recording 6.7% in January, 7.1% in February, 7.8% in March,8.1% in April and 8.8% in May.

According to GFK, Huawei surpassed Samsung and Apple to achieve the largest market share in the China market, recording market share of 12.9%, 13.6%, 14.1% and 15.2% in March, April, May and June respectively. In global markets, Huawei held 24% and 20% of market share in Spain and Italy respectively.

Huawei flagship devices ship towards the "5 million" mark

In 1H 2015, Huawei's flagship smartphone, Huawei Mate7 shipped a global total of 5 million units with impressive sales in over 100 countries including China, Western Europe, Middle East, South East Asia, and South Pacific, among others. Huawei P7 recorded accumulative sales of 7 million units and was available in over 100 countries and regions. Over one million units of Huawei P8 have been sold in the first two months since launch with availability in over 52 markets including China, France, Spain and Italy.

Committed to becoming the most respected brand among global consumers

In May 2015, Huawei was named one of BrandZ's 'Top 100 Global Brands' of 2015 for the first time, ranking in 16th position in the technology and science category with brand value of USD 15.335 billion. This follows Huawei's success in being the first Mainland Chinese brand to reach Interbrand's Top 100 Best Global Brand list in 2014.

As of June, our global social media community comprises of more than 6.8 million fans. This is a 40% year-on-year increase, with total volume of online conversations increasing by 60%. Specifically, the number of "mentions" of Huawei handsets in Spain and Italy rose 118% and 132% respectively between April 2014 and April 2015.

Committed to being a long-term competitor, capitalizing on the opportunity brought about by the "Internet of Things"

In the second half of the year, Huawei Consumer BG will continue to leverage its experience and knowledge in telecommunications hardware and software to capitalize on the opportunities presented by the "all things connected" era. Thus, Huawei intensified its wearables strategy and introduced the Huawei Watch W1, TalkBand N1 and B2 during the Mobile World Congress in Barcelona this year.

Globally, Huawei has 16 R&D centers including an aesthetic research center in Paris, a mathematics research center in Russia, a design and quality control research center in Japan, a software research center in India, among others. As of June 30, Huawei has applied for a total of 76,687 patents, among which 18,000 are device-related. A total of 41,903 patents have been authorized on a global level.

In the development of interconnected cars, Huawei entered into a number of strategic partnerships with major automobile brands in 1H 2015, including Volkswagen, Mercedes-Benz, and Audi, with the latter two partners appointing their third-party suppliers to use Huawei vehicle-mounted 4G communication modules in their future car-networking equipment. By integrating the company's capabilities in 4G and 5G networks, Big Data and cloud technology, Huawei aims to be the leading player in the interconnected cars industry and promote interaction among cars, smartphones and wearables to create seamless communications and a comfortable and safe driving experience for users.