- Huawei's revenue in 2018 was $107,13 billion, up 19,5% compared to 2017, but profit growth has declined slightly.
- The consumer business became Huawei's main source of revenue for the first time, while sales in the key network equipment sector declined slightly.
- Pressure from the US and its allies continues.
- In 2019, the company is set to achieve double-digit revenue growth again.
China's Huawei's revenue rose 19,5% in 2018, surpassing the psychological $100 billion mark for the first time, according to an official report, despite ongoing political turmoil with the United States and some of its allies.
Last year, the company's sales amounted to 721,2 billion yuan ($107,13 billion). Net profit reached 59,3 billion yuan ($8,8 billion), up 25,1% from a year ago. The revenue growth rate was higher than in 2017, but the increase in net profit was slightly slower.
Huawei's financial performance is a bright spot for a company facing a string of negative developments driven by strong political pressure. The US government has expressed concern that Huawei's network equipment could be used by the Chinese government for espionage. Huawei has repeatedly denied these allegations, but US pressure and action are getting tougher.
Sales of network equipment for mobile operators (a key area of the telecommunications division) reached 294 billion yuan ($43,6 billion), which is slightly lower than 297,8 billion yuan in 2017. The real growth driver was the consumer business, whose revenue grew by 45,1% compared to the same period last year and amounted to 348,9 billion yuan ($51,9 billion). For the first time, the consumer sector has become Huawei's biggest revenue item.
The administration of US President Donald Trump is trying to force allies to stop buying Huawei equipment when deploying next-generation 5G mobile networks. Some countries, like Germany, have ignored the insistence of the US, while others, such as Australia and the UK, have acted more in the wake of the US.
Almost every morning brings news of another Huawei problem. For example, on Thursday, after a UK special commission inspected a Chinese company's equipment, concerns were raised about safety. Issues with Huawei's approach to software development have been found to significantly increase risks for carriers in the UK, according to a government-led oversight board.
There was no outright ban, but concerns were raised about risk management when using Huawei products. “We understand these concerns and take them very seriously,” Huawei said in a statement, adding that it will continue to work with the US government to address the issues raised.
Earlier this month, Huawei filed a lawsuit against the United States over a law preventing government agencies from buying equipment from the Chinese tech giant, arguing that the law was unconstitutional.
Guo Ping, one of Huawei's rotating board chairs, said in a press release on Friday that cybersecurity and protecting user privacy are an absolute priority for the company. Asked by CNBC about 2019 forecasts, Mr. Ping said that in January and February, revenues were up 30% from a year ago.
He also noted that he expects double-digit growth this year, despite various challenges: “Thanks to the investments in 5G made by mobile operators this year, as well as the opportunities presented by the transition of enterprises to digital technologies, and finally, growing consumer demand, this year, Huawei will be able to achieve double-digit growth again. As we move forward, we will do everything we can to eliminate distractions, improve management and make progress towards our strategic goals.”
Source: 3dnews.ru