Huawei Profits increased 42% this year
Huawei has shown tremendous increment and an incredible revenue during 2016. The company is the 3rd largest smartphone company and have achieved record sales last year. The results or stats prove to be not so pleasing.
Despite selling 30% more and more phones will be selling last year. Profit lowers down to at least 10% in 2015 and ranging to be $2billion instead of $2.2 billion. The revenue of the company increased and will reach $26 billion or tunes to 42 %. However, eliminating the expenditures and rising costs will make sure that less money will be left in shareholders pockets. There is a silver lining since company spent money on R&D which will help potentially in the future.
The element of rising component costs as a rising marketing bill, which expects to be rampant expansion in new markets. The company is known to offer additional benefits with carriers, and exclusive deals in the infrastructure collaborate which rising costs.
However, these measures are important and help to focus on the growth of the company. In the future, the company will own credibility as well as offer reliability in new markets.