Huawei Post Record US$107 Billion Revenue
Privately-owned Chinese tech giant, Huawei, has notched a record US$107.1 billion revenue for full-year 2018, despite being embroiled in a global security saga and US-China trade war.
The company’s consumer business group has become its biggest earnings contributor – with revenue up 45% – offsetting flat sales from its network equipment division.
Huawei’s mobile segment lead the charge, with shipments climbing 34% to 206 million units in 2018. Mobile head, Richard Yu Chengdong, has pledged to win 50% of the Chinese market by year end.
The company’s smartphone and consumer business now accounts for 48% of total sales.
For full-year 2018, Huawei reported a 19.5% lift in annual revenue, with net profit climbing 25% to ~$US$8 billion. It follows a 28% jump in profit last year.
The news has seen Huawei join the likes of Google parent company, Alphabet, and Apple in the US$100 billion annual revenue club.
Despite being banned from Australia’s 5G network and facing security concerns from other Western governments (e.g. US, UK, NZ and Canada), Huawei Rotating Chairman, Guo Ping, claims it expects “more large-scale deployment” of 5G this year.
Huawei has continued to reject security allegations, forecasting 5G to be a “huge” opportunity.
The privately owned Chinese company post its earnings the day before fresh warnings from United Kingdom officials over security implications.
“These findings are about basic engineering competence and cyber security hygiene that give rise to vulnerabilities that are capable of being exploited by a range of actors,” reads the UK oversight board’s report.
Mr Guo has continued to refute security concerns, affirming cybersecurity and privacy are at the “absolutely top of our agenda”, and countries which work with the Chinese giant will be the most competitive in the 5G era.
The earnings announcement was conducted by Guo in lieu of Chief Financial Officer and Founder’s daughter, Meng Wanzhou, who is currently facing extradition proceedings in Canada.
Currently the world’s third largest smartphone maker, Huawei expects revenue to jump to US$125 million this year.