China’s Huawei posts 25 percent increase in 2018 profit on smartphone sales

FILE PHOTO: The Huawei logo is displayed in the Os Horn campus in Songshan Lake in Dongguan, Guangdong province, China, on March 25, 2019. REUTERS/Tyrone Siu/File Photo

SHENZHEN/HONG KONG (Reuters) – China’s Huawei Technologies, the world’s third largest smartphone maker, reported a 25 percent jump in 2018, with net profit, buoyed by a solid performance in the domestic market and a booming smartphone business.

Shenzhen-based Huawei and fetched a net profit of 59.3 billion yuan ($8.8 billion), compared with 28 percent increase in 2017 and a major rebound from a 0.4 percent in 2016.

The outlook for the Huawei is clouded by the U.S. accusations that its telecoms equipment in the network can be used for espionage by the Chinese government and calls for the allies of Washington to ban Huawei from building the next-generation mobile networks.

Huawei has repeatedly said Beijing has no influence on this.

Huawei’s revenue grew 19.5 percent 721.2 billion yuan last year, in line with what was previously highlighted.

That marked the fastest pace of the growth of the activities in the two years for Huawei, despite the increased control of its activities.

A senior company said earlier this week that the AMERICAN campaign against Huawei had little impact on the sales of the company and that it was unlikely many countries would listen to the AMERICAN call for a ban on the gear.

The company expects the revenue to jump to $125 billion in the year 2019.

($1 = 6.7349 Chinese yuan)

Reporting By Anne Marie Roantree in SHENZHEN and Sijia Jiang in HONG KONG; Editing by with the ipad has Himani

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