Huawei forecasts 33% jump in profits

PanARMENIAN.Net - China's Huawei has forecast a 33% jump in profits, boosted by strong performance in Europe and Japan, according to BBC News.

The telecoms equipment maker said it expects to have made a net profit of 15.4bn yuan ($2.5bn; £1.5bn) in 2012. This is in sharp contrast to rival ZTE, which warned on Sunday that it may make a loss of up to 2.9bn yuan in 2012.

Both firms have been trying to expand, but have come under increased scrutiny in markets such as the U.S. over alleged ties to the Chinese government. Hauwei and ZTE deny the allegations.

Huawei said its final and audited results for 2012 will be released in April.

The firm, which is one of the world's biggest makers of telecommunications equipment, has also been trying to tap into the fast-growing smartphone market.

Huawei said it made "huge breakthroughs in selling smartphones in Japan, North America, Europe, and other high-end markets" in 2012. It said it plans to launch new models in the second half of 2013 to build on its growth in the sector.

"Smartphone penetration is still way too low and there is a lot of room for growth," said Cathy Meng, Huawei's chief financial officer who is also the daughter of company founder Ren Zhengfei.

Ms Meng added that the firm will also focus on cloud computing, which she said would be "a huge sector in the next five years".

Huawei said that it expects its revenue to grow between 10 and 12% in 2013.