Huawei’s first- half revenue percentage surges up despite political problems
Current statistics reveals that China’s telecoms giant, Huawei, has experienced an increase in revenue despite political issues bedevilling the company, with the first six months of the year 2019 recording a 23.2 percent increase in revenue from January to June.
A total of 146.5 billion Yuan was recorded in sales revenue from Huawei’s carrier business, which sells core-networking equipment. Moreover, a 24% increase was also recorded in the smartphones sector as the tech giant managed to ship a total of 118 million smartphone units, a figure which shows an increase as compared to last year in 2018.
Inside sources claim that Huawei recorded a total revenue collection of 401.3 billion Yuan which can be translated to about 58.26 billion US dollars and the company recorded an 8.7 net profit margin over the stated period. Huawei recently issued a press release saying that the the tech giant’s operations are smooth and their organization Is sound like never before.
The sources further claim that to date the company has secured 50 commercial 5G contracts with a number of global telecommunication carriers. 5G Is a term that is used to refer to fifth Generation of high-speed mobile internet which is anticipated to be a major force to reckon with in terms of mobile networks in the coming years.
Huawei ranks as one of the leading innovators in the creation of the hypodermic 5G technology although there are fears that the company could spread Chinese espionage with their advanced 5G fast networks, to which the company says it’s equipment does not pose any risks at all to any nation.
Despite that, Huawei has been denied permission to participate in the development of 5G technologies near the borders of certain countries such as the United States of America, New Zealand, Japan and Austria.
The United States of America in May 2018 added Huawei and its partners to the Bureau of Industry and Security (BIS) Entiry List, which successfully imposed an embargo on Huawei’s ability to embark in business with American companies. Washington would later soften its stance and use the tech giant as a bargaining chip between it and Beijing.
In a statement, Huawei Chairman Liang Hua said revenue has managed to grow through May given the foundation that the company has laid before the company was added to the list, the tech giant Is proud to record the success that it has recorded so far. Hua further said that despite that the company do have difficulties that might affect its progress in the long run.
In June Huawei founder and CEO Ren Zhengfei said that the US had launched precise strikes against the company, with each strike hitting Huawei’s parts.
Ren said at the time that Huawei’s capacity of production may decrease in years to come and its revenue will be about 30 billion dollars less than what would have been revealed by forecasts. According to Ren’s earlier predictions, in 2019 and 2020 Huawei’s annual sales revenue would be standing at 100billion dollars.
For the first time in its history, Huawei topped 100 billion dollars in revenue collections for last year (2018).
The Chinese phone market is dominated by Huawei, with many people using different Huawei smartphones and other Huawei portable devices for communications as well as other services.
220.8 billion in Yuan revenue was recently recorded from the tech giant’s consumer business, which sells Huawei tablets, smartphones, Personal Computers and wearables.
According to Huawei, for the first -half of 2019, 118 million units of smartphones were shipped, resulting in an on-year jump of 24%, with its honor-branded phones contributing to that figure.
Considering world shipment volumes, Huawei is the second largest global manufacturer of smartphones and locally in China, the company has consolidated its lead by scooping a 38.2 market share in the 3 months that ended in June 2019, with major competitors losing ground to Huawei, according to research firm Canalys’ report.
According to Canalys” data ,in the total percentage of smartphone shipments made by Huawei in this quater, 64% were local shipments within the confines of China.
An analyst at the research firm, Mo Jia, said “Huawei’s addition to the United States Entity list has caused uncertainty overseas, but in China it has set foot on the accelerator”.
“It’s core strategy remains investing in aggressive offline expansions, and luring consumers from rival brands”, added Mo Jia.
Mo Jia further stated that the trade war between the United States of America and the China was creating new opportunities for the tech giant.