Huawei earnings: Profit up 20% despite US campaigns against the company
The Chinese technology company reported on Friday that the annual profit jumped 25% to 59.3 billion yuan (8.7 billion yuan), down from 28% growth the year before.
But the growth in the operator business, the segment that provides telecommunications products, including 5G equipment to carriers worldwide, declined by 1[ads1].3%. At a press conference on Friday, the rotating leader Guo Ping said the decline was mainly because the company invested in research and development last year, as well as investment cycles in the global telecom industry.
But the United States has led an effort to curb Huawei's ambitions to become the global leader of next-generation wireless technology, or 5G. Washington has urged Allies to restrict or prohibit the use of Huawei equipment in their 5G networks, claiming that Beijing could use its products to spy on other nations. Huawei denies that any of its products constitutes a national security.
Guo recognized the geopolitical headwinds on Friday and underlined the company's strong performance in cyber security.
He has also raised concerns about the company's supply chain.
As ZTE, Huawei buys important parts for its telecom equipment from US companies.
Asked by CNN if the company could survive such a ban, Guo suggested that US companies could be more injured than Huawei on the move.
"Huawei will ensure global supply continuity," said Guo, through a translator on Friday. "All our partners, including US partners, will also benefit from Huawei procurement and cooperation with us."
For the first time surpassed revenue from Huawei's smartphones and consumer electronics business sales from the company's telecom equipment segment. The consumer business now accounts for almost half of the company's total sales.
Huawei sold more than 200 million smartphones in 2018, increasing its revenue from its consumer business to around 349 billion yuan ($ 52 billion) – an increase of more than 45%.
