Huawei profit jumps despite adversity
Information and Communication Technology (ICT) company, Huawei profits jumped by 25% in 2018 despite efforts by government of the US to curtail its business.
TheNewsGuru (TNG) reports President Donald Trump last year signed the National Defense Authorization Act (NDAA), which prohibits the US government and its contractors from buying certain telecommunications and video surveillance equipment from Huawei.
The bill also prohibits the US government from buying products from a handful of other Chinese communications companies, including ZTE.
The ban covers components and services deemed “essential” or “critical” to any government system.
Also, the US has been lobbying its allies to shun Huawei’s products on national security grounds, saying Chinese law requires the company to provide it with intelligence on its foreign clients whenever requested.
However, the Chinese tech giant 2018 earnings jumped by 25% to 59.3 billion yuan, about $8.7 billion.
While the 2018 earnings is powered majorly by Huawei’s booming smartphone business, sales revenue fell short of earlier company forecast, but still rose by 19.5% to 721 billion yuan ($105 billion).
At a press conference on Friday, rotating chairman Guo Ping said sales of telecom equipment to carriers fell 1.3% in 2018.
Guo said the decline was mainly due to investment cycles in the global telecom industry.
Huawei sold more than 200 million smartphones in 2018, boosting revenue in the company’s consumer business to about 349 billion yuan ($52 billion) — an increase of more than 45%.
Huawei sells more telecommunications equipment than any other company in the world, and its smartphone business is growing faster than that of Samsung or Apple.