Huawei’s growth slows after sanctions and political pressure

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Huawei’s mobile phone and consumer goods business continued to overtake its weak telecom equipment arm in the first half, helping the Chinese company increase sales to Rmb454 billion ($ 64.9 billion).

Sales growth slowed to just over 13% from 23% in the first half of 2019, but privately-held Huawei said its profit margin improved from 8.7% to 9.2% and that its three main divisions had shown growth.

The company released its results on the eve of a British government decision on whether to force its telecom operators to remove Huawei from their networks and remove it as a supplier of 5G, the next generation of mobile Internet .

The group’s telecommunications equipment business faced serious political winds, while its consumer division was affected by trade sanctions that prevented its latest phones from using Google’s mobile phone software suite.

Gartner, the research group, had calculated that Huawei was the worst hit of the main smartphone manufacturers in the first quarter, with deliveries down 27%, but the company said its consumer business had increased sales by 16% at 255.8 billion Rmb in the first half.

In the operator sector of Huawei, which sells equipment intended for telecommunications networks, sales increased by 9% to reach 159.6 billion Rmb as customers, including BT, Vodafone and Three in the United Kingdom, deployed 5G networks.

“These results show that they continue to choose Huawei when they want reliability, security and value. Our priority here is to build a better connected UK where everyone can benefit from 5G and fiber broadband, no matter where they live, ”said Victor Zhang, vice president of Huawei.

The company previously said that the US campaign against it had significantly affected its finances.

Eric Xu, president of Huawei, said in March that his annual revenues had exceeded expectations by $ 12 billion last year. “The US government campaign against Huawei in Europe has had a fairly significant impact on our business,” said Xu.

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