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Huawei, which was put on an entity list by the U.S. on back in May, has reported strong financial results for the first half of 2019. Revenue is up 30 percent compared to the same period last year, which is quite impressive, given the uncertainty that has clouded the battered company in recent times.
Increase in Revenue Came Due to Increase in 5G Contracts - Huawei Co-Founder Believes Company Will Register 270 Million Smartphone Shipments This Year
While previously, the U.S. government only had problems with Huawei’s 5G equipment, in May it also placed a new ban on the company, under which various critical partners, including Google, were forced to cut ties with the company. Without key supply partners, the Chinese company was essentially left for dead and even though the results show an increase in revenue, the effects of the ban have clearly started to kick in.
Back in April, Huawei reported a 39 percent increase in revenue and given that the combined growth rate for the first half of the year is 30 percent, it’s evident that the rate slowed down significantly in the second quarter of 2019. Apparently, the growth was buoyed by 5G contracts, as the company revealed last week that it has entered 50 commercial deals, 28 of which have been signed with European carriers. Back in April, the company’s rotating chairman, Ken Hu has said that he expects Huawei’s carrier unit to register double-digit growth because of accelerated deployment of 5G networks.
Smartphone sales do not seem so bad either, as the company managed to sell around 100 million handsets in the first five months of the year. Since the embargo was imposed in mid-May, June results will give a clearer picture and provide a better insight into the future. In June, during the G20 summit, President Donald Trump softened his stance towards the company, as was expected earlier.
This allowed some U.S. companies, including chipmaker Intel, to resume business with Huawei and with the launch of the foldable Mate X and flagship Mate 30 series slated for the second half of the year, we can expect the company to bounce back, provided things continue to go smoothly with the U.S.
It was also rumored that in light of the U.S. ban, Huawei was working on an Android alternative called HongMeng OS, with the company’s co-founder, Ren Zhengfei stating that it is ‘very likely’ faster than Android and iOS. Unfortunately, another Huawei executive, Senior Vice President Catherine Chen clarified that HongMeng OS is not an Android alternative, and it will be used in other applications, such as IoT.
Despite this, a separate report claims that Ren believes Huawei will ship around 270 million smartphones this year, which is a very impressive figure; even more so when you think about the obstacles and setbacks the Chinese giant has had to face in 2019 so far.
Do you believe that Huawei will be able to make a strong come back now that tensions have eased off with the U.S. or will its sales take a hit because of the whole fiasco? Let us know what you think by commenting down below.
News Source: Mobile World Live