Huawei profit margins are declining

Huawei is a brand which is getting better and bigger and it is grabbing a strong hold in the smartphone market. This Chinese manufacturer is producing some high quality smartphones with a fair price. However, as for last year, Huawei’s operating profit has not much different than a year before.
Huawei has released Their financial report for 2016. The report shows that in 2016 there is an increase of revenue by 32 percent as compare to 2015.
Huawei earned the revenue grand total of RMB 522 millions which is around $75 Billion Dollar in 2016. The operating profit in 2016 by Huawei was RMB 37 billion or $5 billion. However, if we compare the operating profit of Huawei’s in 2016 to operating profit in 2015, then there is a three percent down to 9 percent difference in the margin of the profit.
The consumer electronics division of Huawei has grown a lot with the launch of Huawei Mate 9 and P9. Last year, Huawei has sold over 140 millions smartphones. The margin of product sold increase 30 percent as compare to a year before. However, the company is yet to grow a lot because other manufacturer are also climbing up the ladder. Huawei is aiming to grow a lot more outside of China especially in the US.
Huawei is running great in Asia especially in China. It has made 45% if the revenue from China in 2016.
Huawei recently announced the improvement in the Global markets to increase their financial results. The big Chinese smartphone manufacturer is well aware of the Global Markets and the goal is to increase the profit and deliver great smartphones with a fair price.
Huawei has announced few interesting Smartphones this year, P10 and P10 plus. Also there are other quality smartphones from their sub brand name Honor.


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