Huawei, the world’s third largest smartphone brand, posted a 40 percent increase in first quarter sales revenue when they reported their earnings on Monday. The company says they expect to maintain their current growth trajectory throughout the year.

Huawei recorded $245.5 billion yuan ($37 billion USD) in revenue during the first six months of 2016, claiming they have managed to beat the sluggish market with upgraded smartphones and strong network gear sales.

Despite hearty growth figures, Huawei’s operating margin dipped to 12 percent from 18 percent the same time last year. The privately held company diversified their smartphone stock heavily in late 2015 and early 2016, pushing into the premium space occupied by Apple and Samsung.

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Cate Cadell

Cate is a tech writer. She worked as a journalist in Australia, Mongolia and Myanmar. You can reach her (in Chinese or English) at: @catecadell or catecadell@technode.com