A Huawei logo is pictured in their store in Vina del Mar, Chile, on July 18, 2019.
Rodrigo Garrido | Reuters
China's Huawei recorded a 23.2% year-over-year increase in sales in the first six months of 2019, despite the political headwinds.
The company said that total revenue was 401.3 billion yuan (US $ 58.26 billion). The net profit margin for the period was 8.7%. In a press release, the technology giant said its operations were "smooth" and "the organization as solid as ever".
Huawei's carrier business, which sells core networking equipment, posted sales of 1
] To date, the company has completed 50 commercial 5G contracts with world-leading telecommunications providers. 5G refers to the fifth generation of high-speed mobile Internet – it is expected to be a major factor in the tech industry in the years to come.
Huawei, for his part, is regarded as one of the leading names in the race for development of the emerging 5G technology. However, the company fears that its technology could allow China to spy on these high-speed mobile networks. Huawei has repeatedly denied that its products pose a risk.
Nonetheless, countries such as the US, Australia, New Zealand, and Japan have limited the company's involvement in 5G development within their borders.
US added in May Huawei and its affiliates are members of the Entity List of the Bureau of Industry and Security (BIS), virtually eliminating the possibility of doing business with American companies. Washington later softened its stance and the technology company could possibly serve as a negotiating vehicle for the ongoing trade negotiations with Beijing.
"Revenues rose rapidly until May," said Huawei chairman Liang Hua in a statement. "Given the fundamentals that we laid in the first half of the year, we continue to see growth after being included in the company list, which does not mean that we have no difficulties, we do that and they can influence the pace." from our short-term growth. "
Huawei founder and CEO Ren Zhengfei said earlier in June that the US government had launched" precise "strikes against us, with every" strike "affecting our crucial parts. "
He said at the time that Huawei's production capacity will decline in the coming years and sales will be" $ 30 billion lower than projected. "Ren had previously predicted Huawei's annual sales over the years Huawei's first $ 100 billion revenue in 2018.
Huawei phones dominate China.
The company, the smartphones, tablets , PCs and wearables, achieved sales of 220.8 billion yuan.
According to Huawei, 118 million smartphones were shipped in the first half of 2019, an increase of 24% over the previous year, including the brand's mobile phones
The company is already the second largest smartphone maker in the world in terms of shipment volume, and in China, Huawei consolidated its lead in three months n, which closed in June, gained 38.2% market share as key competitors lost ground, a new report from research firm Canalys said.
A total of 64% of the company's smartphones for the quarter were shipped to China, according to Canalys.
"The inclusion of Huawei in the United States Entity List has created uncertainty overseas, but in China it has set foot on the accelerator," said Mo Jia, an analyst at the research firm, in the report. "The company's core strategy remains to invest in aggressive offline expansion and attract consumers from competitive brands."
"The trade war between the US and China also opens up new opportunities," added Mo Jia.