On Tuesday, Chinese tech giant Huawei Technologies warned that the US blacklist would have an impact on the growth of short-term income, even when its six-month income increased 23 percent after the increase Sale of smartphones at home.
In its first results since Washington placed the system on a list of entities in May that effectively banned US companies from providing services, Huawei also said it remained focused on improving the global smartphone industry, which suffered major disruptions in the chain of supply caused by the U.S. action.
“Revenue grew fast up through May,” Huawei Chairman Liang Hua told reporters at an earnings briefing.
“Given the foundation we laid in the first half of the year, we continue to see growth even after we were added to the entity list. That’s not to say we don’t have difficulties ahead. We do, and they may affect the pace of our growth in the short term,” he said.
The US government claims that the Chinese firm is a risk to national security, equipment that can be used by Beijing to spy, which Huawei has repeatedly denied.
It has since been suspended for three months until August 19, and US President Trump announced that Washington would relax sanctions imposed on Huawei, although the details are unknown.
Huawei’s founder and CEO Ren Zhengfei told reporters last month that the impact of the blacklisting was worse than expected. It could cost the company $30 billion in revenue, and that Huawei’s revenue this year and in 2020 could stay roughly the same as 2018 at around $100 billion, he said.
Liang said on Tuesday Huawei remained confident in its ability to cope with the blacklisting and its 5G product roll-out had not been affected. The company has won 11 5G contracts since the blacklist was put in place out of a total of 50 bagged so far, he said.
Analysts said strong domestic smartphone sales and new 5G carrier contracts were helping to offset the impact from the export ban that threatens to cut Huawei’s access to advanced U.S. components and software such as Google Android apps.
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17 November, 2019