Huawei reported half-year revenue growth of 40% while the European firm saw declining sales in the period
Chinese ICT services provider again beat Swedish vendor Ericsson in terms of revenue during the first half of 2016.
Huawei reported sales of 245.5 billion yuan ($36.7 billion) in the first half of the year, representing an increase of 40% compared to the same period last year. The Chinese company did not disclose the net profits for the period.
Huawei Consumer Business Group recorded sales of 77.4 billion yuan in the first half, surging 41% year-over-year. Smartphone shipments stood at 60.56 million, a year-over-year increase of 25%.
Meanwhile, Ericsson recorded sales of 106.3 billion kronor ($12.3 billion) in the first six months of 2016, down compared to 114.2 billion kronor in the same period last year. Net profits for the period amounted to 3.7 billion kronor, almost flat vs. the same period last year.
Huawei recorded 395 billion yuan in 2015 revenue, climbing 37% year-on-year. The company’s carrier division, which includes its telecommunication equipment and base station-related businesses, accounted for nearly 60% of sales last year. Net profit for the year amounted to 36.9 billion yuan, a 33% increase compared to the previous year.
Ericsson announced 2015 global sales of 246.9 billion kronor, an increase of 8% compared to the previous year. Ericsson said it had experienced higher sales in India, China and North America. Ericsson’s net profit for the year totaled 13.7 billion kronor, an increase from 11.1 billion kronor in 2014.
Ericsson has been cutting jobs for several years as part of an effort to reduce costs, and the second-quarter earnings report suggests that more layoffs are likely. The company recently presented an action plan to significantly reduce cost and adapt to the current market environment. Also, on July 25, Ericsson’s board announced that Hans Vestberg stepped down as president and CEO effective immediately.
