Huawei's growth becoming sustainable with 4G LTE networks

Huawei Technologies Co Ltd will achieve sustainable growth in 2014 after posting a 19 percent growth of revenue in the first half, the world's No. 2 telecom equipment maker said on Monday.

In the first six months, Huawei's revenue was 135.8 billion yuan (US$21.9 billion), with an operating profit margin of 18.3 percent.

[Related news: Huawei's first-half revenue jumps 19% to $21.9 bln]

"Driven by increasing investments in (4G) LTE networks worldwide, Huawei has further solidified its leadership position in mobile broadband," Huawei's CFO Cathy Meng said in a statement.

"Rapid growth in software and services helped maintain steady growth in our carrier network business," Meng added.

The smartphone business has also become a new income engine of Huawei, which has launched its flagship model P7 in 70 countries and regions, the statement said.

China will become the world's biggest regional 4G network with more than 700 million 4G users, accounting for 25 percent of the global level, according to Ericsson, the world's biggest telecommunications equipment maker.

All three Chinese carriers have launched LTE (long term evolution) networks in major cities nationwide, which offer users 4G network for high-speed data services such as mobile film and video conference.

Read more: Huawei bolsters UK presence with tech deal

Huawei Technologies Co Ltd has made its first equity investment in a British technology company as the Chinese networking and telecommunications giant looks to boost its consumer business by tapping into the market potential of Internet of Things, said analysts.

The Shenzhen-headquartered Huawei Technologies has joined with Robert Bosch Venture Capital GmbH of Germany and Xilinx Inc from the United States to invest a total of $26.2 million into XMOS Ltd, a Bristol-based semiconductor company and a leader in intelligent multicore microcontrollers. >>>