Huawei Brushes Aside US Blacklist as It Boosts Sales 24%

Robert Clark
News Analysis
Robert Clark
10/16/2019

If the US ban on component supply is harming Huawei, it isn't showing up in its results.

The vendor in Washington's crosshairs has cruised to another comfortable profit, supporting claims that its supply chain has not been affected by the blacklisting.

It has posted a notional net profit of 53.14 billion Chinese yuan ($7.52 billion) for the first three quarters of 2019 on revenues of RMB610.8 billion ($86.0 billion).

The result covers the first full quarter following Huawei's addition to the US entity list, which bans US firms from exporting to the Chinese vendor.

If anything, growth appears to have accelerated this year.


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Topline revenue has risen 24.4% in the first nine months, compared to 19.5% for 2018 and 15.7% in 2017. The 8.7% net profit margin is also up slightly from last year.

The privately held company doesn't break out segment figures, but the raw numbers suggest growth continues to be powered by handset sales.

The device business grew 45% to become Huawei's biggest segment in 2018, accounting for 48% of total revenues.

In the year to date it has shipped 185 million units, a year-on-year increase of 26%. This includes "rapid growth" in new products such as PCs, tablets and wearables, Huawei says.

In its core carrier business, Huawei continues to rack up 5G contracts. It has now signed more than 60 commercial deals and shipped 400,000 5G Massive MIMO active antenna units (AAUs) worldwide.

CEO Ren Zhengfei said last month that Huawei would build 1.5 million 5G basestations in the first half of next year.

Huawei cites the launch of 5G Super Uplink, a carrier solution that optimizes network bandwidth and latency, as one of the product highlights of the quarter.

In the battle to develop an alternative operating system to Android, Huawei says its Huawei Mobile Services ecosystem now has 1.07 million registered developers.

Research firm Counterpoint says Huawei's Harmony OS system may overtake Linux to become the world's fifth biggest device OS next year.

— Robert Clark, contributing editor, Light Reading

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