China’s Huawei has reported a one third jump in its full year profits as the company said it was boosted by demand for its smartphones.

Net profit for the full year to December reached RMB36.9 billion (US$5.7 billion).

The company cited strong smartphone sales in China and Western Europe as a major factor in the profits rise.

It’s three business divisions saw revenues rise by more than profits though, up by 37 percent to RMB395 billion (USD60.8 billion), which could indicate falling profit margins and more aggressive attempts to win network contracts by undercutting rivals.

Operating margins fell slightly to 11.6 percent from 11.9 percent.

Looking ahead, the firm expects revenues to rise by around 23 percent to USD75 billion this year.

Huawei’s growth is “a direct result of strategic focus and heavy investment in our core businesses,” the company’s current rotating CEO, Guo Ping said in the earnings statement.