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39% Rise In Huawei Revenues For First Quarter Despite Increased US Pressure

39% Rise In Huawei Revenues For First Quarter Despite Increased US Pressure
Despite being cornered in a number of western countries including the United States, there was a 39 per cent increase in the first-quarter revenue at 179.7 billion yuan ($26.81 billion) for the Chinese tech giant Huawei Technologies, the company announced on Monday.
This is the first ever quarterly results revealed by the Chinese company. 
The company also notched a net profit margin of about 8 per cent for the quarter which was a bit higher than what was achieved by the company last year in te same period, Huawei said.  The Shenzhen-based tech firm which is also the largest telecom equipment maker and the third largest maker of smartphones globally, did not disclose its actual net profit.
This first and strong quarterly results announced by the company was achieved amidst a torrid business environment against it with an intensified a campaign against it by the US. The company has been alleged to be close to the Chinese spying authorities and hence its telecom equipment could be used by such Chinese authorities to eavesdrop on western countries. The US has also been urging its allies and partners in trade to ban the company from participating in the roll of the next generation 5G telecom network in friendly countries.
All such allegations have been vehemently denied by Huawei multiple times. Recently, it had embarked on a very aggressive media campaign and had for the first time allowed entry of journalists to its campus in China. The typically low-key founder of the company Ren Zhengfei also gave a number of media interviews on the company and the business environment.
Last week, this Chinese tech firm confirmed that despite the US pressure, it has been able to bag more contracts for providing 5G telecoms gear. The company said that it had signed 40 commercial 5G contracts with carriers by the end of March. Additionally, it had also shipped more than 70,000 5G base stations to markets across the globe and is expecting it would ship over 100,000 such equipment by may this year, it said.
In 2018, the network business of Huawei noted its first drop in revenues in two years. However, in an interview earlier this month to a television channel, Ren Zhengfei said that in the first quarter, there had been a 15 per cent growth in network equipment sales while there was a 70 per cent increase in the sale of its consumer business. “These figures show that we are still growing, not declining,” Ren said.
The company also expects to notch up double digit growth for the current year in all of its three business groups - consumer, carrier and enterprise, said Guo Ping, rotating chairman of the company.
In the first quarter, 59 million smartphones had shipped by the company, Huawei also said on Monday. While the itself did not divulge the year on year data or increase, market research firm Strategy Analytics said that in the first quarter of 2018, Huawei shipped 39.3 million smartphones.

Christopher J. Mitchell

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