Huawei reported revenues for 2011 up 11.7 percent to CNY 203.9 billion. Sales growth was led by its consumer division, where the company has been expanding beyond modems and routers to also sell smartphones and tablets. Consumer revenues rose 44.3 percent to CNY 44.6 billion, and the company shipped almost 150 million devices. The Enterprise business, where Huawei has been expanding in the past year, grew sales 57.1 percent to CNY 9.2 billion. Carrier network equipment remained its largest business, generating revenues of CNY 150.1 billion, up from CNY 145.8 billion in 2010. In its home market China, Huawei grew sales 5.5 percent to CNY 65.57 billion, while sales abroad rose 14.9 percent to CNY 138.4 billion. Huawei said it also increased R&D spending by 34.2 percent last year, to CNY 23.7 billion or 11.6 percent of sales. The higher investment and expansion in new areas led to a drop in operating profit, to CNY 18.6 billion from CNY 30.7 billion in 2010. Net profit more than halved to CNY 11.6 billion from CNY 24.7 billion a year earlier.
