Huawei reports surge in revenue for Q3 2019 despite US ban

Huawei, the China-based giant which is stuck in the US-China trade war and has been put on “Entity List” by the United States effectively banning the company from doing business with any of the US-based companies, is apparently doing just fine.

As per the latest financial report of the company for the third quarter of this year, Huawei has reported revenue rise to CNY 165.29 billion ($23.28 billion). During the first three quarters of this year, Huawei generated CNY 610.8 billion in revenue, an increase of 24.4% year-on-year. The company’s net profit margin in this period was 8.7%.

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The announcement followed US-Chinese trade talks in Washington that ended Friday with no word on resolving Huawei’s status. The US government has delayed enforcement and suggested it might allow sales of some US technology. However, Liang Hua, Huawei’s chairman, had warned it July that it would “face difficulties” in the second half.

Huawei has said that smartphone shipments rose 26 percent in the first nine months of 2019 over a year earlier, to 185 million units. The company also revealed that it 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 company could face some troubles going forward given that the US is lobbying European and other allies to ban Huawei from plans to upgrade networks to 5G. Huawei’s increased reach makes 5G technology more politically sensitive and the company is a leader in next-generation network technology meant to support new wave of innovative technologies.