Huawei 2011 Annual Report Download - page 23

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18
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Consumer Business
With the rapid development of mobile Internet, the
smart device industry is quickly becoming a part of
life in a whole new way. The consumer market is in a
period of transformation. The mobile broadband trend
has created great opportunities for personal hand-
held electronic devices. Huawei has established the
Consumer BG based on its in-depth insight into industry
trends and is dedicated to providing excellent products,
experiences, and services for global consumers.
In 2011, Huawei's consumer business increased rapidly,
earning a global sales revenue of CNY44,620 million, an
increase of 44.3% year-on-year. Adjusted for the effects
of exchange rates, sales revenue achieved an increase of
46.4% year-on-year. The overall annual shipment totaled
nearly 150 million units, including 55 million mobile
phones, resulting in an increase of 30% year-on-year.
Huawei had China's leading market share of CDMA
smartphones. Smartphone shipments rapidly increased,
with Huawei shipping nearly 20 million smartphones, an
increase of over 500% year-on-year. In the eld of MBB
and home devices, Huawei continuously consolidated
its global leadership position. In 2011, Huawei shipped
over 60 million MBB devices globally, ranking at the
top in the global market. Huawei also shipped over
30 million home devices, with fixed access and fixed
wireless terminals consolidating their leading positions
in the global market. In addition, we continuously
maintained rapid growth in key markets, such as the
US, Europe, Japan, and China, and enhanced our brand
inuence.
Huawei continuously strives to achieve its goal of
becoming the most influential device brand in the
world. Based on Huawei's overall strategy of "cloud-
pipe-device", we focus on our consumers, innovate
and change our products, channels, and marketing
in an all-encompassing manner, and comprehensively
improve user experience. In the meantime, our
product competitiveness is rapidly strengthened and
our core competencies are being built. Our products
and services are deployed in over 140 countries and
regions worldwide. We are steadily moving toward
accomplishing our strategic goal of becoming the
world's leading mobile phone brand within the next
three years.
Huawei mobile phones have comprehensively appealed
to the high-end, mid-range, and low-end markets. Our
smartphones are emerging as a new force, while the
data card business remains a global leader. Huawei’s
innovative products are now market leaders. In 2011, the
Huawei C8650, Sonic+, and T8300 smartphones were well
received. Global sales for the Sonic model alone totaled
over 10 million units. Our mid- and high-end smartphones
Vision, Honor, and Spark, were highly popular, along
with MediaPad, the world's first 7-inch tablet powered
by Android 3.2. High-end LTE smartphones obtained
recognition in markets such as Japan, the US, and Europe,
successfully establishing a high-end brand image. MBB
and home devices continued to be leaders in the global
marketplace. The rst plug and play data card in the world,
the HiLinkE353, was officially commercialized. Other
products that were commercialized include the B593 (the
world's rst LTE TDD wireless broadband router), the E392
(the world's rst LTE TDD/UMTS/GSM/CDMA multi-mode
data card), and the E369 (the world's smallest PA+ data
card). Our continuous breakthroughs of being "the first
in the world" solidified Huawei's leading position in the
global MBB market.
Huawei has gradually established device sales channels
and is constantly expanding into areas such as social
networking and e-commerce, as a means to diversify
and complement its carrier channels. The influence that
Huawei's device products and brands have on consumers
is rapidly growing due to the development of online and
ofine diversied sales channels.
As we look to the future of smart devices, the Internet of
People and ubiquity of the Internet of Things will further
integrate the real world with the virtual world. By 2020,
the effective interactions between people, things, people/
things, and the environment are expected to result in
over 10 billion smart devices and 50 billion connection
requirements. Loaded with integrated sensory components
and functions like GPS, accelerators, compasses, cameras,
microphones, and near field communications (NFC),
smartphones have become an important vehicle to
perceive the virtual world and the real world and also
the most important portal for mobile Internet. This trend
towards increased connectivity is sure to inspire countless
innovative applications and create completely new business
opportunities and models, all of which will give Huawei's
consumer business even more room for growth.
Management Discussion and Analysis