Huawei, Chinese technology giant, revealed it has realised 39 percent more revenue in the first quarter of 2019, a brilliant start to the year in which it says would see large-scale 5G deployment around the world and provide unprecedented growth for its carrier business group.
Revenue in the first quarter of 2019, it claimed, hit $27 billion or 179.7 billion CNY (Chinese Yuan) as 59 million smartphones were shipped out in the same period.
The information provided was selective and did not include Huawei’s net profit; however, the company claimed its net-margin improved marginally at 8 per cent, compared to Q1 2018.
The privately-held technology company which is one of the world’s largest telecommunications equipment maker and a major rival to Samsung and Apple in the smartphone market has until now been discreet with its quarterly figure although it has always made available its annual financial report.
Huawei’s impressive performance in the first three months of 2019 has followed a 25 per cent surge in its annual profit despite its spate with the United States over claims of espionage, theft of technology and engagements with Iran, amid the US-China trade war.
The United States alleged that Huawei was making it possible for the Chinese government to spy on other countries through the manufacturer’s equipment and it resulted in a backlash from some countries, threatening the company’s business and bringing its activities under security scrutiny.
Notwithstanding, Huawei claims it has signed 40 commercial contracts for 5G with leading global carriers and had shipped more than 70,000 5G base stations to markets around the world as at the end of March 2019.
The revolutionary 5th generation communications technology is close to the epicentre of a global power struggle between Washington and Beijing.
The novel technology would not only change the speed of communications exponentially but could also easily be adapted to warfare especially in guiding drones, missiles and warcraft, stoking USA’s fear of China’s ambition. Huawei repeatedly refuted claims of the United States that it was pushing Beijing’s agenda.
Huawei says its 5G technology lays the groundwork for a truly connected world and would contribute immensely to the internet of things (IoT) and the digital experience of consumers significantly.
Last year Huawei grew its revenue by 19.5 per cent to $107.4 billion or 721 billion CNY. Consumer Business grew by 45 per cent and was the largest contributing segment to its turnover at 48.4 per cent. Huawei’s carrier business, its second largest revenue source in 2018, declined by 1.3 per cent while Enterprise business grew 23.8 per cent.
SEGUN ADAMS
