HONG KONG / SHANGHAI (Reuters) – Chinese tech giant Huawei Technologies, warned on Tuesday of a U.S. trade black-listed sites will have impacts in the short term, the growth rate of income, even if the half of the year, sales were up 23%, thanks to rising smartphone sales in the home.
FILE PHOTO: Workers are stuck at the Huawei booth at Mobile Expo in Bangkok, Thailand, 31 May, 2019. REUTERS/Jorge Silva
In its first results since Washington to be placed in a so-called entity list, in May, that it effectively banned US companies are doing it, Huawei did say that it was aimed at the improvement of the global smartphone business, which bore the brunt of the supply chain disruptions caused by the U.S. action.
“The sales have grown rapidly due to It,” Huawei President, Liang Hua, told reporters at an earnings briefing.
“With the foundation we laid in the first half of the year, we will continue to grow, even if we were to be added to the entity list. That’s not to say that we have no difficulty in front of us. What We’re doing, and they can have an impact on the rate of growth of our business in the short term,” he said.
The U.S. government alleges that the Chinese company is also a national security risk when the equipment is to be used by Beijing to spy on you, that Huawei has repeatedly denied.
It has a three-month postponement to the 19th of August, the US President, Trump reported to Washington that would ease the sanctions on the Smartphone, even though the details are not known.
Huawei’s founder and CEO, Ren Zhengfei, told reporters last month that the impact of the black one, it was worse than I expected. The cost to the company of € 30 million in sales, and that Smartphone sales this year, and by 2020 will remain pretty much the same as in 2018 at $ 100 billion, ” he said.
He said on Tuesday, Huawei has remained confident in his ability to deal with the places on the list, and 5 g of the product roll-out had not been affected. The company has won the 11 and 5 g of contracts, and since the blacklist was put in place out of a total of 50 bags so far, ” he said.
Analysts said that the strong domestic smartphone sales, and the new 5 g of the carrier contracts were helping to offset the impact of the export ban, that is a threat to Huawei’s access to cutting-edge AMERICAN components and software, such as Google’s Android.
Unlisted Huawei, which only began with the announcement of its second quarter results this year, but said sales in the first half of the year jumped to 401.3 billion yuan ($58.28 billion, outpacing the 15% growth a year earlier.
The shipments of the smartphones jumped 24%, to 118 million units as strong sales in China more than compensated for by a world-wide-sale-drop.
According to the data provided by Canalys, Huawei expanded its lead in china’s smartphone market in the second quarter by more than 10 percentage points to almost 40 per cent of the market, while the overseas sales of smart phones has had a slight decline in year-over-year.
He said that the company has its own Hongmeng mobile operating system is still in development for the devices connected to it, and that her preference was to continue to use Google’s Android operating system for mobile phones.
Huawei has been given very little information about the Hongmeng his own back-up system is in development, and in the case that it was cut off from the US-of-the-box software.
“Hongmeng, is an integral part of our long-term strategy, we are not bluffing,” He said.
Reporting by Sijia Jiang and Brenda Goh; Editing by Miyoung Kim and Muralikumar Anantharaman