Huawei Reported Profit in the First Half of 2019 Despite of U.S. Ban

Huawei Reported Profit in the First Half of 2019 Despite of U.S. Ban

Wired Release

Huawei Technologies Co. Ltd., a Chinese technology giant, has sold more than 118 million phones so far in the year 2019. The company, which offers telecommunications equipment and consumer electronics products, has sold more than 59 Mn devices every three months. Huawei has witnessed steady growth through the first half of 2019 despite international concerns around it. Huawei’s network infrastructure business has engagement in selling hardware to prominent cell networks. Thus the Chinese company has reported a profit in the first half of the current year. Apart from that, the company is prospering in other segments and device businesses also.

The current year has come up with a hard time for the Chinese gear maker after the US announced it as a national security threat. Even more, America’s Commerce Department has placed included Huawei in the entity list. Huawei’s CEO Ren Zhengfei has estimated the U.S. ban would cost around $30 billion for the upcoming two years. Besides, the inclusion of the company in the entity list has obstructed its business with American companies. It has also affected the supply of American chipmakers to Huawei’s IT and smartphone business. The ban has stopped deployment of software for Huawei’s smartphones and other devices from companies like Microsoft and Google.

 In January 2019 the Justice Department of US unsealed indictments that included 23 counts pertaining to the alleged theft of intellectual property. Huawei has given a three-month reprieve until August 2019 for companies such as Google to continue offering a wide range of software. Huawei, the second-largest smartphone maker, has now secured 50 commercial contracts for 5G networks in more than 30 countries. Still, the replacement of Android OS remains most challenging for the company. On July 30, Huawei has reported a rise in revenue despite US ban. Whereas, UAE telecom says US ban on Huawei isn’t an issue for its 5G network.