Despite US paranoia, Chinese telecom’s outfit Huawei posted a 19 percent jump in first-half revenue to $21.88 billion. The Shenzhen-based company has had a few problems with the US who have been conducting a witchhunt on Chinese products which they claim ship with spyware and backdoors. Ironically, the only thing actually found with spyware on board came from Cisco and that was added by US spooks intercepting a shipment and installing it.
Huawei said it expected to generate an operating margin of 18.3 percent in the first six months of 2014. There is little detail in the results, as the company is private and does not answer to anyone. However Huawei's CFO Cathy Meng said that the reason for the stonking profits was increasing investments in LTE networks worldwide.
"Rapid growth in software and services helped maintain steady growth in our carrier network business," she said.
Meng said Huawei achieved "sustainable growth" in its consumer business, which includes smartphone manufacturing, thanks to better brand awareness.
Huawei's sales growth in the first half, which the company said was in line with its expectations, comes after a 222 percent to 270 percent jump in first-half net profits flagged by competitor ZTE last week.
Last year, Huawei reported a 10.8 percent rise in its first-half revenue. The company reported 12.2 percent growth in its operating margin in 2013. Huawei wants to get 10 per cent growth a year.