Huawei’s H1 revenue growth is accelerating in spite of US sanctions

HONG KONG / SHANGHAI (Reuters) – China’s Huawei Technologies said on Tuesday sales in the first half of the year was 23.2% faster than it was a year ago, despite an intense U.S. campaign against it, ultimately, to a ban from the end of May.

FILE PHOTO: Workers are stuck at the Huawei booth at Mobile Expo in Bangkok, Thailand, 31 May, 2019. REUTERS/Jorge Silva

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) from 325.7 billion a year ago, the smartphone shipments reached 118 million units, an increase of 24%.

Huawei’s supply chain is significantly disrupted when you have a trade black list of Washington in the middle of May. The U.S. government claims it is a national security risk when the equipment is to be used by Beijing to spy on you, that Huawei has repeatedly denied.

It’s been a 3 month delay until 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,% and 23% growth in sales for the first six months, compared with 15% growth in the same period of the previous year.

“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.”

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.

Analysts say that strong domestic smartphone sales, and the new 5 g of the carrier contracts and helped 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.

According to the data provided by Canalys, Huawei expanded its lead in china’s smartphone market in the second quarter, while overseas sales of smart phones has had a slight decline in year-over-year.

($1 = 6.8860 to Chinese yuan renminbi

Reporting by Sijia Jiang; Additional Reporting by Brenda Goh in SHANGHAI; Editing by Muralikumar Anantharaman

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