Huawei Technologies Co based in China posted on Friday its biggest annual growth in revenue since 2008. The smartphone maker was boosted by the adoption in China of 4G mobile technology as well as strong worldwide smartphone sales.
Huawei, one of the largest equipment makers for telecom in the world, said its total revenue increased 37% to over 395 billion yuan equal to $61.1 billion during 2015, which was just above its 390 billion yuan forecast.
The company, based in Shenzhen, said it is expecting revenue this year to increase to over $75 billion, which would slow its growth down to 23%.
The company targeted in early 2014 overall revenue to reach $70 billion before the start of 2018, which would mean growth of approximately 10%.
Huawei forecast revenue for 2016 of more than $30 billion for consumer devices, which is the division that grew the fastest and the second largest generator of revenue in 2015.
Its forecast implies that growth in revenue in that business would slow to close to 51% during 2015 from its 73% growth in 2015, when Huawei outperformed its domestic peers Xiaomi and Lenovo.
The company became the first handset vendor from China to ship over 100 million smartphones over a period of one year in 2015, when a jump by 44% in shipments defied the slowdown in the market.
The shipments help Huawei’s net profit to increase 32% to over 36.9 billion yuan in 2015, from 2014 revenue of 27.9 billion yuan.
Revenue in the carrier business, which has Ericsson from Sweden as its biggest competitor, increased by 21.4% during 2015 on solid demand for telecommunications equipment used in 4G.
Its carrier business is the largest at Huawei, accounting for over 59% of its revenue in 2015.
The smallest business at Huawei is its enterprise division. That division builds organizations and companies private networks. Revenue for the business was up by 43.8% during 2015.
Huawei spent 15% of total revenue on Research & Development in 2015, which was above its 10% guidance.