Maintaining Top 3 Position with Over 10% Global Smartphone Market Share
Expanding Recognition, Influence and Market Share in the High-end Market with P and Mate Series

Huawei announced its 2017 performance results. Last year's total revenue reached 603.6 billion yuan, representing a 15.7% increase compared to 2016, while net profit reached 47.5 billion yuan, marking a 28.1% increase year-over-year.

In particular, Huawei and the Honor brand demonstrated sharp growth momentum. Huawei shipped a total of 153 million smartphones including the Honor brand last year, with annual revenue of 237.2 billion yuan, up 31.9% compared to the same period of the previous year.



Creating Synergy between Huawei and Honor Brands
In 2017, based on Honor's dual-brand strategy, Huawei introduced a diversified flagship product portfolio to the market. Huawei, which emphasizes innovative features and user experience, achieved significant results in the high-end market by providing products and services that deliver end-to-end experiences to more customers. The Honor brand established itself as an online-exclusive mobile brand highly preferred by young customers, based on sophisticated new technologies.

In 2017, Huawei's flagship products—the Huawei P series and Huawei Mate series—gained popularity among consumers worldwide and enhanced the company's influence in the global high-end market.

Huawei's smart devices also received positive feedback in each region. Huawei products, including Honor, maintained the largest market share in the Chinese smartphone market and were selected as a recommended brand in China's mobile phone industry by Chnbrand, a brand evaluation organization that publishes the China Consumer Net Promoter Score (C-NPS), making it the first Chinese brand to receive this distinction. Huawei smartphones received high evaluations from consumers in European countries such as Germany, Finland, Denmark, Spain, and Italy, with both market share and preference increasing. Huawei was ranked as the second most considered brand in some European countries.

Enhanced User Experience in All Aspects
As market share and brand awareness continued to increase, Huawei focused on improving user experience. Huawei consistently enhanced user experience by focusing on product innovation, mobile services, channel transformation, and customer service, thereby strengthening its foundation as a premium global brand.

The Huawei Mate 10 series is equipped with an AI camera, AI-based smart battery management, an intelligent assistant, and intuitive high-touch features. EMUI 8.0 uses artificial intelligence technology to reduce Android lag and optimize smartphone operation. In terms of mobile services, Huawei AppGallery provides a four-stage security verification mechanism that prevents app security risks for users, establishing a safer and more stable app platform. Throughout 2017, approximately 6.1 billion downloads occurred on Huawei AppGallery, which offers over 600 paid apps across 18 categories.

There was also notable growth in Huawei's proprietary apps and software. Huawei Pay supports services from over 66 banks and is compatible with over 20 smartphones and smartwatches. Huawei Pay can be used for public transportation in Beijing, Shanghai, Guangzhou, Shenzhen, Suzhou, Wuhan, Guangxi, and several other cities. Huawei Video, Huawei Music, and Huawei Reader are chosen by many consumers, and through Skytone, an overseas data service, mobile internet access without a SIM card is available in over 80 countries and regions.

Along with superior mobile services, Huawei's user base continues to expand. As of Q4 2017, Huawei Mobile Services users exceeded 340 million, a figure that includes 30 million users outside of China. As of December 2017, Huawei operates over 45,000 retail outlets, a 10% increase compared to the previous year.

In the customer service sector, Huawei continuously expands service coverage and makes efforts to develop various types of services to provide customers with more convenient and personalized service experiences.

Future-Oriented Open Ecosystem
Today's smartphones stand at an important gateway to entering tomorrow's intelligent world. Beyond simply 'smart' features, they will evolve into entities that are 'intelligent,' and smartphones will transcend being personal tools to naturally extend as part of the body, providing AI-based services. Through machine learning and data analysis, intelligent mobile devices will perform diverse roles in daily life—acting as housekeepers, personal trainers, nurses, drivers, secretaries, and teachers—ultimately providing consumers with more thoughtful and differentiated experiences.

Under this vision, Huawei's Consumer Business Group is developing intelligent products and ecosystems. It unveiled the 'Kirin 970' AI chipset equipped with a Neural Network Processing Unit (NPU). This chipset was incorporated into the Huawei Mate 10 series, resolving computational performance bottlenecks and presenting new possibilities that enable human-machine interaction. The Kirin chipset serves as the foundation of the HiAI ecosystem, and this ecosystem, reflecting Huawei's unique artificial intelligence technology related to chipsets, devices, and cloud, integrates the Kirin chipset, EMUI smart engine, and smart services into an AI mobile computing platform.

Based on intelligent devices, smart home plays the most significant role in daily life. Huawei's Consumer Business Group is advancing the construction and operation of the 'HiLink Smart Home Ecosystem' through ecosystem development in three stages. The first stage is to increase connectivity of all devices. The second stage is to realize full connectivity where humans, devices, and services operate within close proximity. The third stage is intelligent connectivity, where each device possesses independent learning capabilities and enables mutual information sharing across diverse application scenarios.

In 2018, Huawei will continue innovation in core technologies such as artificial intelligence and AR/VR that reflect consumer needs, transitioning smart devices into intelligent devices. Huawei's 'end-to-end' technology will maximize synergy between chipsets, devices, and cloud, and ultimately aims to provide consumers with new user experiences and lead innovation in the smart device industry.