Huawei’s CEO tells CNBC the company can withstand pressure from US
Huawei Says Business Is Still Thriving Despite US Campaign Against Chinese Tech Giant.
The company, based in Shenzhen, China, said Wednesday that it had revenues of 610.8 billion yuan ($ 86 billion) in the first nine months of 2019, up 24% from the same period last year. Private, the company did not disclose detailed earnings data, but reported that its net income was 8.7%.
The results are promising news for the company, which has come under intense pressure from the United States, which blacklisted Huawei in May. The move prevented U.S. companies from selling certain software and components to a Chinese firm without a license, although some have found ways to do business with the company..
Huawei smartphones are not popular in the United States – they are not sold by any US carriers, although Americans can buy them directly from the company. Wherein their networking technologies are used in rural areas of the country.
Washington says Beijing can use Huawei products to spy on other countries. Huawei denies its products pose a national security threat.
Huawei is the world’s largest manufacturer of telecommunications equipment and aims to be the global leader in next-generation wireless technologies or 5G. According to the consulting company Counterpoint Research, this the second largest smartphone manufacturer in the world that competes with Samsung and Apple.
The company says its smartphone business is growing steadily, adding more than 185 million phones were sold in the first three quarters of the year – a 26% increase over the same period last year..
This is especially noteworthy because CEO Ren Zhengfei said in June that overseas smartphone sales fell 40% in the weeks immediately following the US ban. Ren also said that sales of Huawei smartphones in China were growing rapidly..
Huawei’s network business has also been robust. The company said Wednesday that it has accelerated the commercial roll-out of 5G networks around the world and has signed over 60 commercial 5G contracts with «the world’s leading operators».
While Washington is urging its allies to restrict or ban the use of Huawei equipment on their 5G networks, the company has received promising signals from some governments in recent days..
For example, Germany has reportedly decided not to ban Huawei 5G components. Huawei said Wednesday that Germany’s solution creates «a level playing field for 5G providers».
«Huawei will continue to work openly with regulators, customers and industry to ensure mobile network security», – said in a statement from a company spokesman.