Huawei has reported a 36.2% increase in revenue from its consumer business for the first six months of the year on the back of strong smartphone sales.
Sales revenue increased to 105.4 billion yuan, with smartphone shipments up 20.6% year-on-year to 73 million. IDC estimates that Huawei’s share of the global smartphone market grew to 9.8% during the first quarter.
In Greater China meanwhile, Huawei grew its shipments by 24% year-on-year to claim 22.1% of the global market, while Canalys recently estimated that the company maintained its lead in the market for the second straight quarter in Q2.
Huawei also reported growth in APAC markets including Thailand, Malaysia, Japan and South Korea for the period.
Huawei is accelerating its sales strategy in light of its growing brand presence, revealing plans to increase its global retail network to 56,000 stores worldwide by the end of the year, up from 35,000 in May 2016.
ABI Research director David McQueen said Huawei’s results “document a company that is outperforming the smartphone market, showing solid growth in shipments and healthy development in its revenues.”
He said Huawei aims to break 10% global market share for the full year, consolidating its position as the world’s third largest smartphone vendor after Samsung and Apple.
“The company has managed to achieve this continued growth through a focus on providing advanced, innovative products at the high-end, with its P and Mate series of smartphones to the fore with shipments for the two growing 100% year-on-year,” McQueen said.
“This high-end mix in its portfolio has also helped drive up average selling prices by 28% year-on-year, and the provision of a premium design and experience has worked to strengthen its brand image and awareness in the consumer market. It is this premium brand image that the company needs to foster as a central tenant if it is to continue with this success as it allows it to command higher prices and create much needed profit in a highly competitive marketplace.”