Huawei posted its H1 2019 financial results on Tuesday, July 30, reporting a 23% increase in revenue in the second quarter despite the U.S. ban on the importation of its products.
As per the report, Huawei made 221.6 billion yuan ($32.2 billion) in revenue in Q2 2019, which represents a 23% increase year-on-year. Its net profit margin on 401.3 billion yuan ($58.3 billion) of revenue in H1 2019 was 8.7%.
Moreover, the amount of smartphones sold in H1 2019 had also increased. Huawei sold around 59 million gadgets each quarter (a total of 118 million) — a 24% year-on-year increase.
Global research company Canalys reported that Huawei took a record 38% share in the Chinese smartphone market due to its “phenomenal” growth. The company surpassed its competitors Oppo and Vivo, who enjoy an 18% market share each, while Xiaomi and Apple have 12% and 6% respectively.
- First criminal charges against Huawei in the U.S. emerged as early as January 2019. The Department of Justice alleged that the Chinese company is involved in banking fraud, intellectual property theft, violation of the U.S. sanctions against Iran and more.
- Meanwhile in Canada there is the ongoing case of Meng Wanzhou, the chief financial officer of Huawei who was arrested in the country late last year. Wanzhou is set to challenge a U.S. extradition request on fraud charges next January.
- On May 16, the U.S. administration added Huawei to the list of companies which are banned from supplying telecommunication gear to U.S. firms.
- CEO and founder of Huawei, Ren Zhengfei, expects that the U.S. ban will cause a $30 billion decrease in revenue for the company over the next two years.