Huawei Defying Sales Logic With Losses

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Following Huawei’s business dealings can get pretty confusing if you only look on the surface of things. We say this because Huawei managed to post their best sales year yet in 2016 but it came at the cost of reduced profits.

Yes you read that right. Huawei may have sold 30% more phones in 2016 than 2015 but the suffered a loss on the financial end of things. Instead of doing better than $2.2 billion set in 2015, Huawei closed 2016 with only $2 billion. This translates to $200,000,000 in losses. What gives?

A financial firm released a report earlier today and it explained that there are a number of factors that explains why Huawei is losing money. 2016 saw the tech company expanding its presence globally and this requires more spending as they need to comply with registrations and ad-hoc payments.

On a separate note, Huawei also reduced the price of their devices by a small percentage and this is so that they can acquire more sales. So does this mean that the losses will live on in 2017?

The answer is no. 2016 saw Huawei setting up camp in various regions hence they don’t have to think much about it anymore. The tech firm will proceed to launching more exciting products this year and look forward to making it rain gold.