Huawei has reported a double-digit gain in sales despite U.S. sanctions that threaten to disrupt its smartphone and network equipment businesses. During the first three quarters of this year, Huawei generated CNY610.8 billion in revenue, an increase of 24.4% year-on-year. The company’s net profit margin in this period was 8.7%.
Huawei said its sales rose 24.4% in the first nine months of 2019 to 610.8 billion yuan ($86 billion). That was faster than the 23.2% gain reported for the first half.
“Huawei has maintained its focus on ICT [information and communications technologies] infrastructure and smart devices, and continued to boost the efficiency and quality of its operations,” a company statement said.
“This contributed to increased operational and organisational stability and solidified the company’s performance in the first three quarters of 2019,”
The announcement followed U.S.-Chinese trade talks in Washington that ended Friday with no word of progress on resolving Huawei’s status.
Huawei on Tuesday said it welcomed the German government’s move to “create a level playing field” for 5G suppliers, after Berlin released draft security guidelines for next generation wireless networks that stopped short of banning Huawei, even though the US warned again it would reconsider intelligence sharing with allies that use the company’s equipment.
In the carrier business, commercial deployment of 5G networks around the world has sped up. Huawei has continued to launch innovative solutions with leading carriers like 5G Super Uplink, smart & simplified transport networks. The company has also worked with industry partners to establish an industry alliance and an industry innovation base for 5G deterministic networking to enable the innovation and growth of carriers.
To date, Huawei has signed more than 60 commercial contracts for 5G with leading global carriers and shipped more than 400,000 5G Massive MIMO active antenna units (AAUs) to global markets. The production and supply of Huawei’s optical transmission, data communications, and IT products grew steadily.
In the enterprise business, the company launched the Huawei Horizon Digital Platform. With it, Huawei aims to work with customers and partners to build a foundation for the digital world, creating a digital transformation industry worth trillions of US dollars. This platform will also help various sectors like government, public utilities, finance, transportation, and electricity to speed up their digital transformation.
By the end of Q3 2019, more than 700 cities, 228 Fortune Global 500 companies, and 58 Fortune Global 100 companies had selected Huawei as their partner for digital transformation.
Huawei’s cloud service development has been accelerating. In Q3, Huawei announced its computing strategy and released Atlas 900, the world’s fastest AI training cluster. Other innovative products the company has launched include the HUAWEI CLOUD Ascend AI cluster services, 112 new services powered by Kunpeng and Ascend processors, and Industrial Intelligent Twins. These products achieved major breakthroughs in government, Internet service provider (ISP), automotive, finance, and many other industries. Three million enterprise users and developers have used HUAWEI CLOUD to develop products and solutions.
In the consumer business, Huawei’s smartphone business has grown steadily. Huawei’s smartphone shipments in the first three quarters of 2019 exceeded 185 million units, representing a year-on-year increase of 26%. The company also saw rapid growth in other new businesses like PCs, tablets, wearables, and smart audio products.
The Vision smart screen, featuring unique innovations in software and hardware, was also launched in Q3, gaining high acclaim from the industry and consumers. A more robust ecosystem that focuses on consumers and delivers a more seamless intelligent experience across all major user scenarios is now taking shape.
The Huawei Mobile Services ecosystem has also developed rapidly, covering more than 170 countries and regions. It has attracted over 1.07 million registered developers worldwide.
