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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.

Turnover increased by 19.5% to approx. 721 billion yuan ($ 105 billion) – lack of earnings forecast of the company earlier this year.
Huawei is the world's largest manufacturer of telecommunications equipment, and a leading smartphone brand growing faster than Samsung ( SSNLF ) and Apple AAPL ) .

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.

The US campaign has mixed results. The Commission said EU member states should carry out 5G risk assessments by June and a wider security assessment by December. There was no mention of a blanket ban on Huawei equipment.
However, Britain could move closer to the US position on the Chinese technology business. The British Security Officers gave a tough rebuke to Huawei on Thursday, raising new concerns over their yard and asking the company's security commitment.

Guo recognized the geopolitical headwinds on Friday and underlined the company's strong performance in cyber security.

  Huawei fails to convince Britain that it can trust

He has also raised concerns about the company's supply chain.

US criminal charges against Huawei and its finance director Meng Wanzhou increase the possibility that Washington may ban US companies from doing business with the Chinese technology company. US prosecutors accuse Huawei and Meng of violating US sanctions against Iran. Huawei and Meng deny the charges.
Last year, US US companies blocked selling other Chinese tech companies, ZTE, key components. The ban, which brought the company to its knees, was linked to the ZTE violation of Iran's sanctions.

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."

  Huawei crushes Apple in China, and the US is partly to blame

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%.

Richard Yu, CEO of Huawei's Consumer Business, said earlier this year that Huawei will move Samsung as the world's largest smartphone seller by 2020.
Huawei sold fewer phones than Samsung and Apple last year, but it was the only smartphone manufacturer to report revenue growth, according to data from market research firm IDC. Huawei smartphone deliveries grew by 33% in 2018, compared to a decline of 8% for Samsung and a 3% dip for Apple.



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