Home / NEWS / Tech / Huawei tops $100 billion revenue for first time despite political headwinds

Huawei tops $100 billion revenue for first time despite political headwinds

Huawei’s interest grew 19.5 percent in 2018, surpassing $100 billion for the first time, despite continuing political headwinds from nearly the world.

Sales came in at 721.2 billion yuan ($107.13 billion) last year. Net profit reached 59.3 billion yuan, higher by 25.1 percent compared to a year ago. The takings growth was faster than that seen in 2017, but the net profit rise was slightly slower.

Huawei’s numbers are a optimistic spot for the firm, which has faced intense political pressure. The U.S. government has raised concerns that Huawei’s network cog could be used by the Chinese government for espionage. Huawei has repeatedly denied those allegations.

Sales in its carrier topic, which is its core networking equipment arm, reached 294 billion yuan, slightly below the 297.8 billion yuan recorded in 2017.

The unfeigned driver of growth was the consumer business, with revenue for that division rising 45.1 percent year-on-year to reach 348.9 billion yuan. For the foremost time, consumer business is now the biggest share of Huawei’s revenue.

President Donald Trump’s administration has tried to stress allies to bar Huawei from taking part in the rollout of next-generation mobile networks known as 5G.

While some powers such as Germany have defied the U.S., others such as Australia and the United Kingdom have taken a cautious approximate toward the company.

The latest headache for Huawei came on Thursday after the board tasked with vetting the Chinese condensed’s equipment in the U.K. raised concerns about the gear. The government-led oversight board said it found “concerning issues in Huawei’s propositions to software development bringing significantly increased risk to U.K. operators.”

It concluded that it will be difficult to appropriately risk-manage expected products” from Huawei, but stopped short in calling for an outright ban.

“We understand these concerns and take them altogether seriously,” Huawei said in a statement on Thursday, adding that it will continue to work with the U.K. government in delivering the issues raised.

Huawei has tried to counter the negative news toward the company through a public relations energy as well as a legal offensive.

Earlier this month, Huawei filed a lawsuit against the U.S. over a law that prohibits government agencies from buying the Chinese technology giant’s equipment, claiming the legislation is unconstitutional.

Guo Ping, one of the switching chairman at Huawei, said in a press release on Friday that “cyber security and user privacy protection are at the uncompromised top” of the company’s agenda.

Responding to a CNBC question on guidance for 2019, Guo said that revenue grew 30 percent year-on-year in January and February pool.

He also said he expects double-digit growth for this year, despite the various headwinds.

“With the 5G investments prepared by the carriers this year, and industry digitalization opportunities and growing consumer demand, Huawei will still like double digit growth in this year,” Guo said in Mandarin, which was translated into English by an official translator.

“Effective forward, we will do everything we can to shake off outside distractions, improve management, and make progress towards our strategic objects,” Guo said in his press release.

Check Also

Chinese tech giant Tencent quietly tests game streaming platform

Leave a Reply

Your email address will not be published. Required fields are marked *