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Despite An Otherwise Horrendous 2018, Huawei Outperformed Itself Financially


03/29/2019


Despite An Otherwise Horrendous 2018, Huawei Outperformed Itself Financially
Despite it being the news for most of the year for the wrong reasons and despite a number of Western countries expressing concerns over national security because of the company and some even banning it from participating in the roll out of 5G networks, the Chinese telecom tech giant Huawei has had a fantastic 2018 in terms o financial performance.
 
The company reported a 19.5 per cent year-on-year growth in revenues for 2018 at 721.2 billion yuan or $107.4 billion which helped the company to surpass the psychological $100 billion mark for the first time. The growth in net profits was more impressive at 25.1 per cent year-on-year and came at 59.3 billion yuan or $8.8 billion.
 
Through 2018, the company has been banned from doing business in the United States – against which it has filed a legal case, the CFO of the company still remains in house arrest in Canada over allegations of fraud and of violating the US sanctions on Iran and North Korea and the company being pulled up by the British government over fears that the technology and telecom equipment supplied by the company could be insecure.
 
The use of Huawei’s 5G technology enabled equipment for network building and its equipment being used by government agencies was banned in the US  , Australia and New Zealand. There are many other countries that are also contemplating and debating where to ban the company from their 5G technology networks because of concerns that its equipment can be used by Chinese agencies for spying. All these allegations have been denied repeatedly by the Chinese firm.
 
But the company set records for itself in its earnings report for the year despite these setbacks. During the year, more than 200 million smartphones were sold by the company. According to Gartner and Canalys, by the end of 2018, Huawei became the third largest smartphone maker by shipments, trailing Samsung and Apple. In August last year, Huawei had, for a short period of time, become the second largest smartphone maker in the world in terms of shipment by beating Apple.
 
The company is also generating record revenues from its smartpohone business. There was a 45.1 per cent growth year-on-year in the consumer business of the company. Compared to 2017, there was a slight drop of 1.3 per cent in the carrier business of the company which includes the company's 5G equipment business.
 
The Huawei P30 Pro, its new flagship phone, was launched by the company just days ago in Paris. The price of the latest model in Europe is a bit higher than its earlier version - the P20 Pro. Huawei has been progressively raising the prices of its newly launched phone in comparison to their older versions and has yet managed to get huge response from the market. Currently, the price of Huawei flagship phones is at par with its nearest competitors, Samsung and Apple.
 
A report published by CNBC said that Huawei chairman Guo Ping expected to achieve double digit growth for the current year as well.
 
(Source:www.mashable.com)