The outfit said that its net profit edged up just 0.4 percent last year and rose to $5.3 billion.

The reason was intense competition in China's smartphone market from domestic rivals OPPO and Vivo.

Global revenue climbed 32 percent, slightly slower than 35 percent growth a year earlier.

Revenue from its consumer business group rose 44 percent to $26 billion, but lagging the company's forecast of $30 billion made a year ago.

It shipped 139 million phones last year, up 29 percent last year compared with a flat global smartphone market. That just missed an earlier target of 140 million.

The company expects things to get better. It said that it is targeting seven percent profit margin

Revenue from its carrier business group, rose 24 percent thanks to demand for 4G communications equipment.

Revenue from its enterprise business group climbed 47 percent.