Huawei targets $16 billion revenue in consumer business group this year

China’s Huawei is targeting $16 billion in revenue for its consumer business group this year, the head of the unit, Richard Yu, said.

The Chinese consumer product maker, which competes with Apple and Samsung for smartphones, said in December it shipped about 75 million smartphones in 2014, a 40 percent year-on-year increase but lagging its target of 80 million units.

Earlier reports suggest that Huawei likely booked a 17 percent increase in operating profit last year, as worldwide adoption of fourth-generation (4G) mobile technology boosted earnings at China’s leading telecommunications equipment maker.

Profit likely reached 33.9 billion yuan ($5.47 billion) to 34.3 billion yuan in 2014, on a roughly 20 percent increase in revenue at 287 billion yuan to 289 billion yuan, the company had said in unaudited results.

The gradual switch to 4G networks has boosted business at both players. Huawei said revenue at its carrier network business rose 15 percent last year. China’s three carriers alone built close to 1 million 4G towers by the end of 2014, according to some estimates.

Huawei executives in 2013 said the company would invest $600 million in 5G research through 2017. At the same time, the company will continue to pursue its multi-year expansion into smartphones and enterprise computing.

Revenue last year rose 32 percent in Huawei’s consumer devices business and 27 percent in its enterprise division.

With inputs from Reuters