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Huawei Reports Slowest Revenue Growth in 4 Years

Huawei’s smartphone shipments in 2017 totaled 153 million units.Huawei’s smartphone shipments in 2017 totaled 153 million units.

China’s Huawei on Friday flagged overall and smartphone revenue figures for 2017 that represented its slowest growth in four years, and vowed to extend its global reach with more premium products next year.

The telecom equipment and smartphone maker expects 2017 revenue to rise 15% to 600 billion yuan ($92.08 billion), Chief Executive Ken Hu said in his New Years message, CNBC reported.

That represents the slowest growth since 2013 for Huawei. Its fast revenue growth in recent years has been slowing as Chinese telecom carriers complete the construction of the world’s largest 4G mobile network and as competition intensifies in the smartphone market.

Hu said Huawei’s smartphone shipments in 2017 totaled 153 million units and its global market share topped 10%, cementing its position as the world’s third-largest smartphone maker after Samsung and Apple.

Huawei said it would focus on profit after posting near-flat annual profit growth in March, weighed down by its fast-growing but thin-margin smartphone business and marketing spending.

Richard Yu, CEO of Huawei’s consumer business group, in a separate New Year’s message said the group will strive to obtain a larger share in the high-end market globally, after recording “significant” growth in markets such as Italy and Germany in the past year.

“In 2018, we will have disruptive products and innovative technology to lead the global market. I believe that 2018 will be the first year that we will truly be walking the road to global prominence,” Yu said.

In October Huawei launched its Mate 10 series, its most expensive model to date and powered with AI-enhanced chips which the company says are faster than Apple’s iPhones. The model “sold extremely well,” Yu said, without disclosing a number.

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