Huawei calls shots despite US ban
Huawei’s revenues for the first half of 2019 were up and, despite US blacklisting it in May, the Chinese telco is confident of more growth this year. It is now even wooing US allies, like Poland, with investment pledges.
Huawei said Tuesday it has seen a bump in sales, without providing details. The Chinese telco giant is set to announce its results for the first six months of this year on July 30.
The company made the announcement after Washington decided to loosen a US campaign to limit the company’s overseas activities and to sooth potential shareholder worries over lower sales growth.
Just before the US blacklisted Huawei on May 5, the company reported a revenue of $27 billion (€21 billion) in the first quarter, up 40% from last year. The privately held company also saw a staggering growth in revenue and profit last year.
The company’s founder, Ren Zhengfei, said in January he expected sales to rise 30% this year.
But then Huawei was blacklisted by the Trump administration over allegations its equipment could be used to spy on the US.
Zhengfei said the company could lose $30 billion in revenue in 2019 and 2020 due to the restrictions. In June, the Chinese giant downgraded its forecast for total smartphone shipments in the second half by 20% to 30%.
Chinese consumers rally behind Huawei
Huawei’s ongoing strength is widely attributed to increased smartphone sales in China, helped by a combination of intense marketing and consumers rallying around a beleaguered national company. China accounted for over 50% of the company’s revenue in the first quarter.
In January, the Justice Department and FBI filed criminal charges against Huawei for fraud, intellectual property theft and obstruction of justice. Huawei was, among other things, accused of copycatting a device-testing robot called “Tappy” made by US telecom company T-Mobile.
China and the US remain engaged in a trade spat with both sides slapping tit-for-tat tariffs on goods worth $360 billion. US president Donald Trump has hinted at using Huawei as a bargaining chip to extract a trade deal from China.