Huawei: strong growth despite American sanctions

Huawei shows strong growth despite American sanctions

Chinese telecom manufacturer Huawei seems to remain largely unaffected by the sanctions of the United States: turnover increased drastically in the first six months of the year.

 

118 million smartphones

Huawei's total turnover in the first half of 2019 went up 43 % to 401.3 billion yuan (52.3 billion euros) and the tech company generated a net profit of 4.5 billion euros in the same period.

 

The division that targets the consumer market remains the company's biggest source of revenue, bringing in a turnover of 220.8 billion yuan (28.8 billion euros). In the first six months of the year, Huawei sold as many as 118 million smartphones (including the sales of subsidiary Honor), which is an increase of 24 million sold items. The sales of other consumer products such as tablets, PCs and wearables were on the rise as well.

 

Blacklisted

Huawei also manufactures technology used for 4G and 5G networks: this network division generated a turnover of 146.5 billion yuan (19.1 billion euros). The company claims to have signed over fifty contracts for the rollout of 5G. The B2B department (featuring cloud services, data centres and artificial intelligence) recorded a turnover of 31.6 billion yuan (4.1 billion euros).

 

All this growth comes despite the fact Huawei was blacklisted by United States president Donald Trump in May (although the sanctions have been softened since then). For now, the damage to the Chinese company does not look too bad: Huawei has faith in the future and says that the planned investments, including 120 billion yuan (17.4 billion euros) in R&D, will go on as planned.