Huawei Reports 13.1% Jump in 2020 H1 Profits Led By Consumer Business

Guo Ping
Huawei Rotating Chairman Guo Ping

Chinese tech corporation Huawei has revealed its 2020 H1 business results. The announcement is positive for the most part, bearing in mind that the company is battling a U.S. ban, and that the world is also trying to manage the effects of COVID-19 that have been hard on the majority of businesses.

Huawei says it generated CNY 454 billion (KES 6.96 trillion) revenue in the first six months of 2020. The value translates to a 13.1% increase year on year with a net profit margin of 9.2%.

Huawei adds that its carrier, enterprise, and consumer business achieved CNY 159.6 billion, CNY36.3 billion, and CNY225.8 billion in revenue, respectively.

Huawei has always been doing very well in carrier and enterprise spaces. The company is one of the few that have seen extended 5G installations in multiple countries, and the corporation has been awarded multiple contracts to oversee related projects.

Huawei has also been preferred in the space because it reportedly offers superior telecoms products at a reduced price than the competition.

While it is still banned in the US, Huawei has been making grounds in other countries such as India.

In addition, in the next couple of years, more carriers in the globe will start growing from 4G, and Huawei is well-positioned to meet the needs of such businesses as far as 5G installation is concerned.

Locally, Huawei is already providing phones that are not equipped with Google apps and services such as the likes of the nova 7i, Y8p, Y7p, and Y6p, among others. We are not sure how long this will be the case bearing in mind that Western markets use Google apps extensively – and whether if a change in administration in the US (after the November 2020 elections) will see the ban lifted.

What Huawei Says

As countries around the globe are grappling with the COVID-19 pandemic, information, and communications technologies (ICT) have become not only a crucial tool for combatting the virus, but also an engine for economic recovery. Huawei reiterated its commitment to working with carriers and industry partners to maintain stable network operations, accelerate digital transformation, and support efforts to contain local outbreaks and reopen local economies.

The complex external environment makes open collaboration and trust in global value chains more important than ever. Huawei has promised to continue fulfilling its obligations to customers and suppliers and to survive, forge ahead, and contribute to the global digital economy and technological development, no matter what future challenges the company faces.