A Huawei logo is depicted in their store in Vina del Mar, Chile on July 18, 2019.
Rodrigo Garrido | Reuters
China's Huawei reported a 23.2% year-over-year increase in revenue in the first six months of 2019 despite political headwinds.
The company said total revenues came to 401.3 billion yuan ($ 58.26 billion) and the net profit margin for the period was 8.7%. In a press release, the tech giant said business is "smooth" and that "the organization is as healthy as ever."
Huawie's transportation business, which sells core network equipment, reported 1
For its part, Huawei is considered to be one of the leading names in the race to develop the emerging 5G technology. But the company faces increasing fears that the technology could enable Chinese espionage through these high-speed mobile networks. Huawei has repeatedly denied that the products represent any risk.
Countries such as the United States, Australia, New Zealand and Japan have continued to limit the company's participation in 5G development within its borders.
In May, the United States added Huawei and its subsidiaries to the Bureau of Industry and Security (BIS) Entity List, which effectively stopped the opportunity to do business with US companies. Later, Washington softened the stance somewhat, and the technology company could potentially be used as a bargaining chip in ongoing trade negotiations with Beijing.
"Revenues grew rapidly through May," Huawei Chairman Liang Hua said in a statement. "Given the basis we laid in the first half, we continue to see growth even after we were added to the list of units. That is not to say that we have no difficulties going forward. We do, and they can affect the pace of our Short-term growth. "
Huawei Founder and CEO Ren Zhengfei said earlier in June that the US government had initiated" precise & # 39; strike & # 39; against us, with every & # 39; strike 39, which hits our key parts. "
He said at that time that Huawie's production capacity could decline in the coming years and sales revenue" would be about $ 30 billion lower than expected. " Ren previously predicted that Huawei's annual sales revenue would be around $ 100 billion in 2019 and 2020.
For 2018, Huawei topped $ 100 billion for the first time.
Huawei phones dominate China
Technology giant's consumer business, which sells smartphones, tablets, PCs and laptops, reported sales of 220.8 billion yuan.
Huawei said it sent 118 million units of smartphone for the first half of 2019, resulting in a 24% jump on the year. This figure includes its earphone phones,
The company is already the world's second largest smartphone manufacturer by shipping volume. In China, Huawei consolidated its lead by gaining 38.2% market share in the three months ended June, when major competitors lost ground, according to a new report by Canalys research firm.
A total of 64% of smartphones the company sent for the quarter were in China, according to Canaly's data.
"Huawei's addition to the US entity list caused uncertainty overseas, but in China it has kept its foot on the gas pedal," Mo Jia, an analyst at the research firm, said in the report. "Its core strategy is still investing in aggressive offline expansion and attracting consumers from rival brands."
"The US-China trade war also creates new opportunities," Mo Jia added.