Huawei increases its revenues by 39% despite the increase of US pressure

The Chinese telecommunications giant Huawei recorded a 39% increase in revenues in the first three months of the year, to 179.7 billion yuan (US $26.81 billion) the company reported, which sold 59 million smartphones between January and March. The Chinese manufacturer, which did not offer figures on its profitability in the first quarter, limited itself to reporting that its margin on its net profit during the first quarter of 2019 was close to 8%, “slightly above the same period of the last year.”

Despite accusations of espionage launched from the US, Huawei noted that by the end of the first quarter of 2019 it had already signed 40 5G commercial contracts with some of the world’s leading operators, in addition to having delivered more than 70,000 5G base stations in markets all over the world. “2019 will be a year of large-scale deployment of 5G worldwide, which implies unprecedented growth opportunities for Huawei’s operator business,” added the Chinese company, which has recently received the backing of the German authorities, who ruled out the possibility of vetoing their participation in the spectrum auction currently held by Germany.

Being the largest manufacturer of smartphones in the world, Huawei said that between January and March it had sold 59 million smartphones, while highlighting the good reception of consumers to products such as personal computers, ‘wearables’ and smart home devices. Despite the accusations made by the US, Huawei claims to be a company owned by its workers, noting that currently 96,768 employees are shareholders of the company, while “no government agency or external organization is a shareholder of Huawei.”

Last March, Huawei filed a lawsuit in US courts challenging the unconstitutionality of legislation that prohibits US government agencies from acquiring the Chinese technology manufacturer’s products for security reasons. The lawsuit, filed with the Plano District Court in Texas, where Huawei is based in the US, denounces that legislation passed for security reasons not only prohibits government agencies from acquiring products or services from the Chinese company, but it also vetoes the hiring of other companies that make use of these products or services, underlining that the measure violates the principle of separation of powers set forth in the US Constitution.

During the past year, Washington has increased its pressure on the Chinese firm, one of the main players in the construction of next-generation wireless networks around the world, even bringing charges against the company at the end of last January for having infringed the US sanctions regime against Iran and urging other governments to ban the use of Huawei products. Also, the US requested the extradition of Huawei’s financial director and daughter of the company’s founder, Meng Wanzhou, who was arrested last December by the Canadian authorities.

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