There are over three hundred analysts worldwide attending Huawei's Global Analyst Summit, held from April 23 to 25 in Shenzhen, China. Our analysts from our Wireless Smartphone Strategies (WSS) service also joined the event.
The key theme of day one is about the overall corporate performance review and strategy outlook. Clearly, operator business still makes up the lion’s share of overall revenue, but the enterprise business and consumer business have been growing faster in 2013. Geographically, China contributed to 35% of total revenue in 2013, Europe, Asia Pacific and Latin America also saw healthy growth. In contrast, North American performance remains lackluster and posted year-over-year decline last year. Company overall profitability improved.
For the smartphone business, in which Huawei ranked the third largest vendor worldwide in 2013, according to this report from our Wireless Smartphone Strategies (WSS) service, Huawei reiterated its commitment to the smartphone business but indicated it will shift focus from volume growth towards sustainable growth and profitability. Compared with the two giants Apple and Samsung, the operating profit margin on Huawei's handset business was still quite slim in 2013. Our Wireless Device Strategies (WDS) service tracks the top 12 handset vendors' value and profitability figures on a quarterly basis in this report.
Looking forward, Huawei's consumer business needs to identify its own way to fulfill its growth target, rather than sometimes copycatting other players’ strategies (e.g. Xiaomi’s online distribution, or Samsung’s vertically integrated model, etc.). To avoid a price-war and further improve profitability, it seems, is the keyword for Huawei's global smartphone business in 2014.