Huawei posts strong Q1 revenue growth despite US pressure

By Chen Qingqing Source:Global Times Published: 2019/4/22 19:53:40

A view of Huawei's stand during the Shanghai Auto Show on Wednesday Photo: Zhang Hongpei/GT

Huawei Technologies, the world's largest telecom equipment provider, announced 39 percent year-on-year revenue growth for the first quarter and a slight gain in its net profit margin, amid escalating pressure from the US. 

Revenue reached 179.7 billion yuan ($26.8 billion) as it kept its focus on ICT infrastructure and smart devices, the company said in its financial results released on Monday. 

Its net profit margin was about 8 percent, slightly higher than the same period last year, the company said. 

It was the first time the private company released quarterly results, in line with its strategy of becoming more open and transparent, and the result beat market expectations amid growing external challenges, industry analysts said. 

Its consumer business, which was the biggest contributor to its revenue in 2018, also saw solid growth, with 59 million smartphones shipped in the first quarter of 2019. 

"It has been catching up with its major rivals and will achieve its annual goal of 250 million units this year," James Yan, Beijing-based research director at Counterpoint, told the Global Times on Monday. 

Huawei's overall first-quarter performance was eye-catching and a rare success amid rising difficulties in overseas markets, Yan said. 

The company, which has become the world's second-largest smartphone vendor, aims to overtake top-ranked Samsung by 2020. It is accelerating production of 5G smartphones with total shipments forecast to exceed 1 million this year. 

Huawei was the smartphone leader in China in 2018, capturing 25 percent of the market, followed by domestic brands Oppo and vivo, according to industry consultancy Counterpoint Research. 

Apple continued to lose ground to its Chinese rivals due to high prices, the research firm said in a post in February. 

In spite of a US-led geopolitical campaign to bar Huawei from entering the global 5G market, the company had signed 40 commercial contracts for 5G with overseas carriers as of the end of March and shipped more than 70,000 5G base stations to markets around the world. 

"Huawei has offered 5G-ready comprehensive solutions for telecom operators, taking positive steps in deployment and gaining an edge in the market," Huang Haifeng, deputy editor-in-chief of domestic industry site, told the Global Times on Monday. 

"To my knowledge, it is helping operators build up more than 40 5G networks worldwide," he said. 

Newspaper headline: Huawei posts strong Q1 revenue growth

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