Huawei failed to gain respectable profit growth due to branding boost for consumer units

Huawei failed to gain respectable profit growth due to branding boost for consumer units

The world’s third largest phone manufacturer, Huawei had shipped more phone ever than before last year, but their annual profit growth only increased by 0.4% which is equivalent to 5.3 billion in the year 2016.

One of the profit drinking factors is consumer units in branding boost spending has dragged down the net profit margin by 0.9%. Huawei took 711 million for branding purposes has affected year-on-year growth shrink from 35% to 32%.

Telecommunications and enterprise division made revenue gain as well, however nowhere near enough to make up the spending on branding boost.

[SOURCE]