Huawei shrugs off US sanctions as sales grow 18%: Revenues hit $122bn in 2019

Huawei has reported resilient sales in 2019, in spite of an intense effort by the Trump administration to weaken the Chinese technology group and shut it out of western markets.

Revenues this year surged 18 per cent, Huawei said on Tuesday, little changed from 2018’s 19.5 per cent growth rate.

After the US banned exports to the company in May, Huawei’s founder Ren Zhengfei predicted annual revenues would remain flat from 2018 to the end of 2020, at about Rmb721bn ($100bn).

But in a New Year’s message, the company’s chairman Eric Xu wrote that sales grew over the year to $122bn, a performance that analysts attribute in part to a rapid reconfiguration of Huawei’s supply chain.

Washington has lobbied its allies to ban Huawei from their next generation of telecoms networks, alleging that its equipment poses a threat to privacy and national security.

Meng Wanzhou, the country’s chief financial officer and daughter of Mr Ren, was detained in Canada in December last year on US charges related to violating Iran sanctions.

But there has been a mixed reception from US allies. Huawei on Monday secured a major victory in India, the world’s second-largest telecoms market, which has agreed to let the company participate in trials of its 5G spectrum.

“We have our full confidence in the Modi government to drive 5G in India,” said Jay Chen, chief executive of Huawei India. “Huawei is always committed to India.”

Huawei announced that it shipped 240m smartphones in 2019, up from 206m the previous year. Analysts warn that the company faces its toughest challenge in the overseas smartphone market, where Huawei’s new phones are sold without access to the Google Play app store because of US sanctions.

The brand has enjoyed high growth in the Chinese market, where Google’s apps are banned.

https://www.ft.com/content/1665bc74-2b0f-11ea-a126-99756bd8f45e

"Fire and fury"? More like "bluster and blunder"! Trump's sanctions only hurt American citizens by increasing cost of products.

(edited 4 years ago)

Reply 1

Just my opinion

Is this your full time job?

Reply 2

Drewski

2020 will be a dip though.

The Chinese and Indian middle classes - the ones spending their money on these devices - like to be seen to be doing the things that US or European middle classes do. They can't do that if they can't get access to the same tools.

The longer Huawei are without Google, the worse it will get for them.

And you know who knows that? The CEO of Huawei:

https://www.forbes.com/sites/zakdoffman/2020/12/30/huawei-warns-2020-will-be-difficult-survival-will-be-our-first-priority/

So your bluff and bluster, Angery, is typically only half the story. And just the half that you like the sound of. Because, as per, you're just a mouthpiece for bull****.

Reply 3

fallen_acorns

Drewski is right... its good news for Huawei in the short term, but the people who are using this as a sign that last years events aren't/wont hurt Huawei are wrong.

Reply 4

AngeryPenguin

Original post by Drewski

2020 will be a dip though.

It won't be :wink:

Reply 5

Drewski

Original post by AngeryPenguin

It won't be :wink:

Why do you think you know better than the CEO of Huawei?

Reply 6

Ragman75

Original post by AngeryPenguin

Its not enough time to tell anything, they just lost android. Also they dont have a huge international presence compared to thier local one, so it wont likely hurt them much now. But loosing android basically killed their growth, they now cant expand past china at all.

Original post by Just my opinion

Is this your full time job?

Yeah im pretty sure hes a paid wumao.

Reply 7

Ragman75

Original post by AngeryPenguin

It won't be :wink:

Only becuse the domestic market is so big, but what will be the signifies of thier success is if their trajectory of growth changes. The company is basically running on momentum at this point if nothing changes. Without android they cant grow outside of China as no one will buy a non apple or android phone outside of the country, because other countries dont have a robust market of domestic app alternatives. and even inside China now they have become drastically less competitive. This is unarguably a deathblow to huewai, there profits are going to get devoured by Oppo and Xiaomi and they are going to go the way of blackberry or sony when it comes to mobile devices.