Huawei 2013 Annual Report Download - page 36

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Management Discussion and Analysis
LTE market further increased and we made
landscape-shaping breakthroughs in telematics.
Our share in the home access market further
expanded, with tablet sales increasing by more
than 200%.
In the past year, our smartphone shipments
reached 52 million units, an annual increase of
more than 60%. Smartphones accounted for
more than 87% of total mobile phone shipments.
As for the revenue from channel sales, while
consolidating our carrier channels, we further
expanded non-carrier channels. The revenue from
open channels (excluding e-commerce channels)
accounted for 45% of our total revenue and
that from e-commerce channels accounted for
5%. In addition, the proportion of shipments of
our mid-range and high-end devices priced at
more than CNY1,500 rose significantly to 12%,
demonstrating that our quality strategy has yielded
some success.
The global shipments of our mobile broadband
devices reached 44.5 million sets in 2013; we have
maintained a leading share in this market for six
consecutive years. We continued to optimize the
overall product landscape. Global shipments of
LTE products reached approximately eight million
units, an annual increase of 103%. We actively
implemented a diversified channel strategy. In
2013, the shipments of our mobile broadband
devices through open channels exceeded four
million sets and we developed large channel
markets outside of China, such as Saudi Arabia,
India, Germany, and the Philippines. Our Internet
marketing efforts in the Chinese e-commerce
market also started to show results. Breakthroughs
were made in telematics. We cooperated closely
with multiple top international automobile
manufacturers on the front-end module and
established strategic partnerships with multiple
automobile brands.
Our profit from home devices grew steadily. Our
share in the fixed access market grew from 14%
to 21%, and we maintained our global leadership
position in the fixed wireless terminal market. We
cooperated with many top carriers and Multiple
System Operators (MSOs) on set-top box (STB)
products. We have established a comprehensive
product portfolio with low-end, mid-range, and
high-end tablets, and have seen tablet sales
increase by more than 200%.
Our Emotion UI took user experience to a new
level. The number of cloud service users exceeded
10 million, with more than 1 million active users.
In terms of user engagement, we implemented a
series of innovative marketing models, such as the
“Tomorrow’s Partners” program, which achieved
some favorable results. More than six million
Huawei fans enrolled in this program.
In 2013, we unveiled our “Make it Possible” brand
proposition for the consumer business. By focusing
on consumer experience, we conducted a series
of branding campaigns worldwide, including
sponsoring football games and clubs, such as
La Liga in Spain, A.C. Milan in Italy, Borussia
Dortmund in Germany, and Arsenal in the UK.
These campaigns significantly boosted brand
awareness for Huawei mobile phones. According
to a survey by Ipsos, the global brand awareness
of our mobile phones reached 52% in 2013, an
increase of 110% year-on-year. This figure was
68% in China, an increase of 113% compared
with the previous year. In addition, the brand
awareness of our mobile phones grew significantly
in Europe, South America, and Southeast Africa.
Brand awareness rose by 230% in Germany, 213%
in Italy, 200% in the UK, and 140% in Spain.
Our consumer business targets people of action
who are also idealists — challengers who have
vision, initiative, and belief that dreams can be
realized through hard work. We strive to bring