ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintSite TitleTitle ChevronIcon Twitter
Technology

Huawei reports 13% revenue growth despite US pressure

Chinese tech company shows resilience in 1st half ahead of UK decision on 5G

U.S. pressure continues to weight on Huawei earnings.   © Reuters

SAN FRANCISCO (Reuters) -- Huawei Technologies, the telecoms firm and No.2 smartphone maker, on Monday reported a 13.1% rise in revenue in the first half of the year, showing slower growth as U.S. officials continue to pressure the company's suppliers and customers.

Revenue rose 13.1% to 454 billion yuan ($64.90 billion) in the first half of the year, compared to 401.3 billion yuan the year before. However, the company's growth rate was down from 23.2% in the first half 2019. Huawei said net profit margins were 9.2%, up from 8.7% in the first half 2019.

The Chinese technology company posted the report a day before United Kingdom officials are expected to order the removal of Huawei gear from the nation's telecommunications networks.

Huawei's rise in sales comes after more than a year of pressure from American officials on the company's suppliers and customers. The company sells 5G networking equipment to carriers and smart phones and laptops to consumers.

American officials placed Huawei on a blacklist in May of last year, restricting sales to the company of U.S.-made goods such as semiconductors. Huawei built up inventories and also continued to design its own chips and have them manufactured by Taiwan Semiconductor Manufacturing Co Ltd and others.

"Huawei has promised to continue fulfilling its obligations to customers and suppliers, and to survive, forge ahead, and contribute to the global digital economy and technological development, no matter what future challenges the company faces," the company said in a statement on Monday.

In May, U.S. officials announced new rules aimed at constricting Huawei's ability to self-supply chips, an ability that is critical to its efforts to sell 5G networking gear.

The first half results showed faster growth than Huawei's first quarter results released in April. For the first quarter, revenues rose by about 1% to 182.2 billion yuan, versus 39% growth posted a year previous. Net profit margin in the first quarter narrowed to 7.3% from about 8% a year earlier.

Huawei did not report unit shipments of phones. Research firm IDC reported Huawei was the second largest phone maker in the first quarter of 2020, with 17.8% market share, behind No. 1 Samsung Electronics Co Ltd and ahead of No.3 Apple Inc.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Try 1 month for $0.99

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends July 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media