Huawei Technology (SHE: 002502) produced a fine third quarter, seeing sales increase by 27% after smart phone sales surged.
The strong sales were driven by a surge in shipments from China launched before the blacklisting by the US, following the trade war.
Huawei is the world’s biggest producer of telecom equipment, and the second largest manufacturer of mobile phones.
Following the tensions of the US China trade war, President Trump banned all US involvement with Huawei disrupting the supply of production parts.
The recent release of the ‘Mate 30’ lacks access to a licensed version of Google’s (NASDAQ: GOOGL) Android operating system.
In a report released on Wednesday, the tech titan announced revenue figures of 610.8 billion yuan. This was a 24.4% increase across the first three quarters of 2019.
Revenue in the third quarter, which ended in September totaled 165.29 billion yuan according to Reuters calculations based on statements from Huawei.
Nicole Peng, Vice President from consultancy Canalys said “Huawei’s overseas shipments bounced back quickly in the third quarter although they are yet to return to pre-US ban levels. The Q3 result is truly impressive given the tremendous pressure the company is facing. But it is worth noting that strong shipments were driven by devices launched pre-US ban, and the long-term outlook is still dim.”
Huawei boasted their strong shipping figures of 185 million smartphones this year, according to analytics this shows a 29% rise in Q3 shipments.
According to these statistics, the legislation imposed by Trump has failed to stop Huawei revenue growth.
A company stated gave the following insight “”Huawei has maintained its focus on ICT (information and communications technology) infrastructure and smart devices, and continued to boost the efficiency and quality of its operations. This contributed to increased operational and organizational stability and solidified the company’s performance in the first three quarters of 2019.”
In addition, US firms such as Intel Corp (NASDAQ: INTC) and Micron Technologies Inc (NASDAQ: MU) found alternate paths to supply parts to Huawei.
Huawei have managed to be successful amidst US pressure, growth does look to be sustainable as tensions between China and US ease.
If a trade deal can be struck up, then Huawei will find it a lot easier to sell more smartphones on a larger scale and can expect higher gross revenues.
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