Huawei results defy US sanctions
Chinese mobile giant reports 25 per cent growth in revenue
Chinese technology business Huawei has reported a 24.4pc rise in turnover for the first three quarters of 2019, far outstripping earlier pessimistic performance estimates.
The figures, reported in Chinese state newspaper the Global Times, suggest that Huawei, the world’s largest manufacturer of telecom network equipment and second-largest smartphone maker, is surviving the storm created by sanctions from the US government.
Huawei has historically close links with the Chinese government providing communication technology to the Chinese army. The US cited security concerns when it placed Huawei on a so-called ‘entity list’, blacklisting it from doing business with any American company.
The firm initially feared. feared that this would eliminate all of its 2019 profit. In August however, founder and CEO Ren Zhengfei announced that the impact would be less pronounced, reducing its smartphone unit’s revenue by around $10bn.
This week’s figures indicated renewed optimism.. With 2019 revenue so far at 610.8 billion yuan ($86 billion) Huawei has shipped over 185 million smartphones this year, up 26 per cent in the same period year-on-year.
The company also reported a net profit margin in the first three quarters of this year of 8.7 per cent.