Huawei Q1 2019 Results Reveal 59 Million Phones Sold, Revenue $26.8 Billion – Its Consumer Business Is Now a Money-Making Machine
Despite the U.S.’ attempt to prevent the company from becoming a global giant it's rapidly evolving into, Huawei seems to be on a roll and continues to make strides. The Chinese company recently revealed that its overall revenue grew 39 percent year over year in the first quarter of 2019. Needless to say, the company is off to a smashing start and it doesn’t appear that the ball will stop rolling here.
Huawei Believes It Can Dethrone Samsung and Become the Largest Smartphone Brand in the World by 2020
The company stated that it earned revenue of $26.8 billion in Q1 2019 and with a profit margin of 8 percent that would amount to quarterly earnings of $2.1 billion. According to the Chinese giant, Huawei sold 59 million smartphones in the first three months of the year, which is nearly a 50 percent increment over the estimated 39 million sales in Q1 2018.
Huawei is the biggest manufacturer of network equipment for smartphones and internet businesses in the world and the U.S. has been actively trying to dissuade its European allies from procuring their 5G equipment from the company. The U.S. says that the company’s equipment is used as a backdrop by the Chinese government to spy on other countries, but Huawei has denied these accusations time and time again.
“Huawei's Consumer Business Group continues to create value for consumers with its innovative products. Its core strategy is to deliver an intelligent experience to consumers across all scenarios. In Q1 2019, Huawei shipped 59 million smartphones. In other business segments like PCs, wearables, and smart home, Huawei has been welcomed by global consumers for its leading, innovative products and superior user experiences.”
For now, things are definitely looking positive for Huawei, but the same enthusiasm might not be shared with its rivals. For instance, earlier in the month, Samsung reported its steepest Q1 profit slide in 4 years as well as flat handset sales. Huawei has made no secret of the fact that it wants to become the number one smartphone maker in the world and if the current trend continues, the company might end up achieving its goal. Samsung, on the other hands, is kind of in a tight spot right now, but with the positive market response of the Galaxy S10 lineup, the Korean behemoth might bounce back.
Unfortunately, the company was betting on its innovative Galaxy Fold to hold on to the number one spot but early reports suggest that the new product might not live up to its hype. On the other hand, the Galaxy S10 series continues to do well and if reports are to go by, the Galaxy Note 10 is also going to be one interesting phone. So, the South Korean giant will definitely not go down without a fight.
According to IHS Markit, Huawei might overtake Apple this year in terms of sheer volume and by the end of 2019, the company’s sales figures might match that of the market leader Samsung. It appears that in one swoop, the Chinese company would defeat both its American as well as South Korean rival, but we still have several months, and there are lots of events that could take place by that time.
News Source: Huawei