Chinese mobile giant Huawei today reported that its revenue rose 40% in the first half of the year.
The world’s third-largest smartphone manufacturer, behind only Samsung and Apple reported H1 sales of 245.5bn yuan (£27.97bn), up from from 175.9bn yuan in the year-ago period. The firm did not disclose its net profit. Operating margin shrank to 12%, down from 18% a year ago, which it said was due to increased investment in the business.
Earlier in the year, the privately held company set a revenue target of $75 billion for 2016.
"We achieved steady growth across all three of our business groups, thanks to a well-balanced global presence and an unwavering focus on our pipe strategy," said Sabrina Meng, Huawei's chief financial officer in a very brief statement. "We are confident that Huawei will maintain its current momentum, and round out the full year in a positive financial position backed by sound ongoing operations."
Huawei forged its name in the world of telecoms infrastructure, and competes with Ericsson as a world leader in the space, but has more recently enjoyed success in the low-mid range smartphone market. The firm is locked in a fierce battle with rival Xiaomi, a low-cost online only manufacturer.
According to research from Strategy Analytics, Huawei increased its shipments from 11.2 million to 16.6 million in Q1 2016, compared to the same period last year, giving it a 15.8% share of the market.
While the company’s domestic market is where the bulk of its revenues come from, Huawei is also enjoying success in EMEA, Latin America and beyond.
The firm continues to struggle in the US, following a congressional report which alleged that the Chinese government may be using Huawei’s telecoms equipment to spy on US companies. Huawei has denied the allegations of backdoors in its equipment.