Chinese technology firm reports record profits

Huawei's Ascend P1 has helped boost profits China tech giant Huawei is said to have replaced Sweden's Ericsson as the world's biggest telecoms supplier, but the Chinese firm's rapid expansion is hampered by security concerns. Huawei's profits rose 33 percent last year to reach a total of 15.4 billion yuan (€1.8bn, $2.46bn), the Chinese telecommunications equipment maker announced Monday.
The record earnings figure was achieved on the back of 8 percent higher revenues in 2012, which came in at 220 billion yuan (€26.5bn), the firm added.
According to industry figures, the Chinese technology firm might have replaced Swedish telecommunications supplier Ericsson as global market leader. Ericsson has not yet released its 2012 figures, but analysts polled by Bloomberg financial services expect the firm's revenues to come in at €26.1bn
Huawei disclosed its figures for the first time at a news conference. The company's Chief financial Officer Cathy Meng said the event was part of Huawei's effort to honor the firm's commitment to transparency.
In recent months, privately-owned Huawei has stepped up disclosures about its operations, trying to counter lack of security allegations in Western industrialised countries. Suggestions it is secretly controlled by the communist government and might be involved in spying have inhibited Huawei's course of expansion, notably in the United States.
Nevertheless, the Chinese telecoms equipment maker, which also produces mobile phones and tablet computers, has rapidly expanded in markets in Europe, Africa and Asia. Earlier this month, the firm unveiled two smartphones aimed at rivaling global leaders Samsung and Apple in the lucrative market.
Source: Deutsche Welle