Huawei posts increase in 2018 earnings despite criticisms

Tuesday, 02 Apr, 2019

Last year, Huawei posted revenue of $105.2 billion, up 19.5 percent year-on-year, on the back of strong momentum from its smartphone businesses. The agency said in a report British researchers saw no sign that was due to Chinese government interference, but it said Huawei had not repaired flaws that might make its systems vulnerable to cyberattacks.

Huawei hit back earlier this month by filing suit in the United States to overturn a law that bars U.S. government agencies from buying the company's equipment, services, or working with third parties that are Huawei customers, crippling the company in the lucrative USA market. "It will enable broader connectivity. that will create huge opportunities", said Guo Ping, Huawei's rotating chairman, at a media briefing on Friday.

"Throughout this process, Huawei will continue to strictly comply with all relevant standards to build secure, trustworthy, and high-quality products", continued Ping. The technology is meant to vastly expand mobile networks to support self-driving cars, medical devices and factory equipment, but that makes it more politically sensitive. "Through heavy, consistent investment in 5G innovation, alongside large-scale commercial deployment, Huawei is committed to building the world's best network connections".

Profit rose 25.1 percent to 59.3 billion yuan ($8.6 billion). A recent article notes: "The US is now considering a ban, while a report produced by a United Kingdom government watchdog raised serious concerns about Huawei's cybersecurity practices". New Zealand and Australia have already banned use of Huawei's equipment and Canada is also expected to do the same.

Despite all this, Huawei managed to sell more than 200 million phones in 2018, and ended the year as the third largest smartphone maker by shipment, after Samsung, and Apple. "I hope the US can adjust its attitude". Huawei says it is independent and strongly denies its products pose a security risk.

The US campaign is having mixed results, CNN said.

Huawei reportedly noted that it has taken the conclusions of the report very seriously, but it may take three to five years to fix the problems.

Xiang Ligang, director-general of the Information Consumption Alliance, said Huawei is now making its "biggest" push to boost engineering capabilities to ease the concerns of foreign regulators and mobile operators. Huawei said it invested more than 101 billion yuan, or about 14% of sales, in research and development.