2017: Creating value, driving growth

Business highlights in 2017     

Carrier business: Moving from the investment-driven to value-driven network construction model

• We deployed over 500,000 base stations around the world, with more than 10 million commercial connections, and worked with over 1,000 ecosystem partners to build the ecosystem.

• We have signed over 350 NFV and 380 SDN commercial contracts around the world and deployed more than 30 CloudAIR commercial networks with wireless air interfaces.

• We conducted 5G pre-commercial tests with over 30 leading carriers in more than 10 cities around the world.

Enterprise business: Enabling digital transformation across all industries

• We continued to enhance product and solution innovations in cloud, big data, campus networks, data centers, IoT, and other domains. We also worked to promote the extensive application of our innovative products and solutions in smart city and safe city projects, as well as in the finance, energy, transportation, manufacturing, and other sectors.

• We worked to build platforms for customer and partner platforms, cultivate a fertile environment in which a robust ecosystem will grow, and build symbiotic relationships founded on shared success.

• 197 Fortune Global 500 companies – 45 of which are Fortune 100 companies – have chosen Huawei as their partner for digital transformation.

Consumer business: Building a world-class smart device brand

• A synergy was created between our Huawei and Honor brands. In 2017, Huawei shipped a total of 153 million smartphones (including Honor phones). We are firmly positioned among the top three phone makers in the world.

• We released the HUAWEI Mate 10 – the first smartphone with an embedded AI chipset.

• Our global brand awareness increased to 86%. The number of consumers considering a Huawei device in non-Chinese markets saw a year-on-year increase of 100%, which put Huawei among the top three global vendors in this category for the first time.

Huawei Cloud: Building open, trustworthy cloud platforms

• Huawei set up a Cloud BU. Our cloud service portfolio consisted of 99 services across 14 major categories, including over 50 solutions.

• We launched the Enterprise Intelligence (EI) platform to deliver a one-stop AI platform as services.

• We continued to build an open, collaborative cloud ecosystem that will thrive on shared success. The total number of our cloud service partners has exceeded 2,000.

Business results by region

China

Based on ongoing 4G network rollout, sustained growth in the smartphone sector, and our growing capabilities in enterprise and industry solutions, our revenue from the Chinese market increased by 29.0% year-on-year.

Asia Pacific

Due to the accelerated pace of digital transformation amongst enterprises and a growing share of the smartphone market, Huawei maintained its growth momentum in the Asia-Pacific Region and our revenue increased by 10.3% year-on-year.

EMEA

Due to the accelerated pace of digital transformation amongst enterprises and a growing share of the smartphone market, our revenue from Europe, the Middle East, and Africa (EMEA) increased by 4.7% year-on-year.

Americas

In the Americas, affected by fluctuations in telco investment cycles in Latin America, Huawei's revenue from this region decreased by 10.9% over 2016.

Translating leading technologies into better and more competitive products and solutions that help our customers succeed

Continuing to invest in R&D and promoting open innovation

• Approximately 80,000 employees were engaged in R&D, comprising 45% of our total workforce.

• Huawei's R&D expenditures totaled CNY89.7 billion in 2017, accounting for 14.9% of the company's total revenue. We have spent more than CNY394 billion on R&D over the past decade.

• Total number of patents granted to Huawei: 74,307

Pursuing joint innovation on a global scale to drive industry development

• The Huawei Innovation Research Program (HIRP) has involved over 400 research institutions and 900 companies in more than 30 different countries and regions.

• We collaborate on joint innovation projects relating to 5G algorithms, AI technology, network intelligence, nanomaterials, and other cutting-edge technologies. These efforts in technological innovation helped us make breakthroughs and drive industry development and business success.

Actively driving ecosystem development and cultivating a fertile environment

• We cultivate a fertile business environment, remain as an enabler, and stay committed to openness, collaboration, and shared success.

• Huawei is an active member of 360+ standards organizations, industrial alliances, and open source communities where we hold more than 300 key positions. We are a member of the board or executive committee in many organizations like the IIC, IEEE-SA, BBF, ETSI, TMF, and WFA.