Wednesday, 31 July 2019 06:33

Huawei has boom first half 2019 despite US attempts to spoil Featured

By
Huawei chairman Ling Hua Huawei chairman Ling Hua

Chinese telecommunications giant Huawei Technologies has defied the US Trump administration’s best efforts to hamper its business through bans and restrictions and recorded a bumper first half.

Huawei announced that for the first half of 2019 the company generated CNY401.3 billion (US$58.29 billion) in revenue, a 23.2% increase over the same period last year. The company's net profit margin for H1 2019 was 8.7%.

According to Huawei's Chairman, Liang Hua, operations are smooth and the organisation is as sound as ever. With effective management and an excellent performance across all financial indicators, Huawei's business has remained robust in the first half of 2019.

In a reference to the US restrictions on its business in that market, Liang acknowledged that it could affect the company’s growth in the short term but he remained bullish about the overall long term and the company would maintain its massive R&D budget which dwarfs that of its rivals.

"Revenue grew fast up through May," said Liang. "Given the foundation we laid in the first half of the year, we continue to see growth even after we were added to the (US) entity list. That's not to say we don't have difficulties ahead. We do, and they may affect the pace of our growth in the short term.

"But we will stay the course. We are fully confident in what the future holds, and we will continue investing as planned – including a total of CNY120 billion (US$17.43 billion) in R&D this year.

“We'll get through these challenges, and we're confident that Huawei will enter a new stage of growth after the worst of this is behind us."

In Huawei's carrier business, H1 sales revenue reached CNY146.5 billion (US$21.28 billion), with steady growth in production and shipment of equipment for wireless networks, optical transmission, data communications, IT, and related product domains.

In the burgeoning 5G space, Huawei’s contention that US and Australian bans on its participation in those markets have had little effect appears to have been born out by the facts.

In its report Huawei notes that the company has secured 50 commercial 5G contracts and has shipped more than 150,000 base stations to markets around the world.

In Huawei's enterprise business, H1 sales revenue was CNY31.6 billion (US$4.59 billion) from multiple sources including cloud, artificial intelligence, campus networks, data centers, Internet of Things, and intelligent computing.

Huawei says that it remains a trusted supplier for government and utility customers, as well as customers in commercial sectors like finance, transportation, energy, and automobile.

US restrictions on companies such as Google and Qualcomm from doing business with Huawei in the smartphone space have yet to be reflected in Chinese company’s results.

Huawei's consumer business, H1 sales revenue hit CNY220.8 billion (US$32.07 billion) with smartphone shipments reaching 118 million units, up 24% YoY. The company also noted “rapid growth” in its shipments of tablets, PCs, and wearables.

Huawei says that is beginning to scale its device ecosystem to deliver a more seamless intelligent experience across all major user scenarios. To date, the Huawei Mobile Services ecosystem has more than 800,000 registered developers, and 500 million users worldwide.

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Stan Beer

 

Stan Beer co-founded iTWire in 2005. With 30 plus years of experience working in IT and Australian technology media, Beer has published articles in most of the IT publications that have mattered, including the AFR, The Australian, SMH, The Age, as well as a multitude of trade publications.

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