According to Huawei’s semi-annual report, following last year's annual report on performance beating Ericsson for the first time, it has seen a year-on-year revenue increase of 19% to reach 135.8 billion yuan, continuing running ahead of Ericsson and widening the gap.
For the first six months of 2014, Huawei’s sales reached 135.8 billion yuan (about $21.74 billion), with operating margin of 18.3%, as showed by the semi-annual operating earnings results. Meng Wanzhou, Chief Financial Officer of Huawei, said: "We are confident to achieve a sustainable growth, solid operation and healthy finance in 2014.”
According to Ericsson’s earning report, for the first half of 2014, its net sales reached 102.4 billion Sweden Krone (about $14.991 billion). As the revenue gap between the two companies constantly increases, Huawei has firmly secured the first place of global telecommunication devices.
During the first half year, the worldwide construction of LTE (4G) network has been the core engine driving its growth.
Insiders believed that Huawei finally ushered a harvest season for its 4G investments. Since 2001, its has signed dozens of patent cross-licensing agreements with industry-leading manufacturers and patent holders. Over 10% of its annual sales revenue is invested in research and development, with total investments of about $25 billion during a decade. In the field of wireless communication, Huawei has grown from the 2G follower into a leader in 4G.
The company is constantly investing in terminal sector. Huawei's P7 smartphones were being sold in more than 70 countries and regions. Benefiting from the global branding and sales of smartphones, Huawei had achieved high-quality and sustainable growth in the consumer business, said Meng.