Despite the increase in sales, the Chinese giant anticipates that tensions with Trump can hamper its growth in the short term
As Huawei announced a few weeks ago, the US veto has not had the devastating effect expected. Despite the conflicts with Washington in which local companies were banned from working with the Chinese giant, their sales in the first half reached 401.3 billion yuan (52.315 million euros), 23.2% more than in Last year The mobile phone sector, which was expected to be the most affected by the problems accessing the Android operating system, grew 24% and exceeded 118 million units sold.
As detailed by the technology, its growth was very rapid until May, when Donald Trump announced that Huawei was entering a “blacklist” (the Entity List) of companies dangerous to national security. As a consequence, US companies could not, by law, sell technology or components to the Chinese giant.
“Given the basis we established in the first half of the year, we continue to see growth even after being added to the Entity List. But that does not mean that we have no difficulties in the future. We have them and they may affect the pace of our short-term growth, “said Liang Hua, president of the company. “But we will stay the course. (…) We will overcome these challenges, and we are sure that Huawei will enter a new stage of growth after the worst of this has happened,” he encouraged.
Parallel to the growth in smartphone sales, the tablet business increased its sales by 10%. The company also indicated that it tripled its turnover in personal computers and doubled that of wearable technology. Liang Hua stressed that Huawei’s retail business revenue in the first half totaled 28,793 million euros, which represents 55% of the company’s turnover, adding that the company already has more than 800,000 registered application developers in its ecosystem of services and more than 500 million users worldwide.
For its part, Huawei’s operator business reached revenues of 19,104 million euros in the first half, 36.5% of turnover, while the area of companies billed 4,121 million euros, 7.9% of the Total revenues. In total, the Chinese giant obtained a net profit margin of 8.7%.
“For the past six months, Huawei has been under pressure from the US and this has had some impact on our performance, but in a controllable extent and extent,” Liang Hua acknowledged in a press conference after the presentation of results. The president has described the figures for the first semester as “pretty good,” and stressed that the strategic products of the Chinese company “have not been affected.” “Customers continue to believe, choosing and buying Huawei,” he said.
Although initially the White House veto was to take effect immediately, Donald Trump announced weeks later that he would postpone it on August 19. During negotiations between the US president and his Chinese counterpart, Xi Jinping, during the G20 summit in Osaka (Japan), Trump decided that he would reverse the veto to allow the Chinese giant to buy US components, but he refused to withdraw the blacklisted company and limited purchases to “equipment that does not pose a major problem for national security”, without giving much more details. Huawei currently has an annual budget for the purchase of components of 62,800 million euros, of which 9,870 million are dedicated to the acquisition of US products.