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How Huawei’s digital transformation support resulted in growth

Hafizah Osman | June 8, 2017
Company releases its 2016 financial results, with US$75.1 billion in revenue.

Digital transformation is reshaping industry ecosystems, according to Huawei and, in line with that strategy, the company is "seizing this opportunity" and working with partners and customers to build Business-Driven ICT Infrastructure (BDII).

With digital transformation at the forefront of Huawei's go-to-market strategy, this focus has proven to be effective for the vendor, as indicated in its 2016 annual report. The release reported that its carrier, enterprise, and consumer business groups each achieved year-on-year growth.

Its annual revenue was US$75.1 billion, an increase of 32 per cent over 2015. Net profits were US$5.3 billion, an increase of 0.4 per cent. In 2016, Huawei's annual spending on research and development reached US$11 billion.

Breaking down the financials for its individual business groups, its carrier division generated US$41.8 billion in revenue, an increase of 24 per cent year-on-year in 2016. According to Huawei, this was achieved by focusing on digital transformation and "leveraging major opportunities" in cloud, video, IoT, and operations transformation for carrier customers.

Huawei's enterprise business division generated US$5.9 billion in annual revenue, an increase of 47 per cent from the same time last year, with the company attributing the growth to close collaboration with its partners, and supporting the digital transformation of key vertical industries, including finance, energy, government bodies, and public safety.

As for its consumer division, it shipped 139 million smartphones during 2016, and reported US$25.9 billion in annual revenue, up 44 per cent from 2015. Huawei said its "innovative products" and growing global recognition were factors behind this.

Huawei board chairwoman, Sun Yafang, said the results show that digital technology can drive the upgrade and transformation of industry, and can help create a better economy.

"Over the next several decades, we will see a migration from the physical world to the digital. In this world, we will see more collaboration between industries and closer integration of technology and business.

"A better connected, intelligent world is on the horizon. As our world evolves in this direction, key ICT technologies like IoT, AI, and cloud computing have become the very cornerstone of society," she said.

Locally, in 2016, Huawei increased its focus on the Australian channel with the appointment of two new distributors - Madison Technologies and CertaOne

It also brought out new programs and promotions to incentivise the partner community.

On 24 March 2016, Vodafone signed a global framework agreement with Huawei to extend the over 10 year relationship between the two companies in a move targeted at gaining market share in the enterprise.

Huawei also took a step forward in its 5G partnership with Optus in November last year, conducting a local Australian trial that clocked up single user transmission speeds of 35 Gbps.

 

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