Huawei today released its annual report for 2019, which indicated slowing profit growth in the past year due to the impact of the America...
Huawei today released its annual report for 2019, which indicated slowing profit growth in the past year due to the impact of the American blacklist on the work of the Chinese technology giant, while a senior company executive told CNBC that the impact of the emerging Corona virus on its business is unclear.
The Chinese company recorded the smallest annual increase in profits in three years, affected by weak foreign sales amid an intense US campaign to restrict its global expansion due to security concerns.
Huawei's revenue grew by 19.1 percent last year to about $ 123 billion, supported by a 34 percent increase in sales for the consumer business unit that includes smartphones, while net profit was $ 9 billion, an increase of 5.6 percent compared to the increase of 25 percent a year ago.
The trade embargo imposed on the company since last May made it difficult for it to obtain American spare parts and software or sell its products in the United States. This has prevented the company from reaching an important market and harmed its ability to compete outside China.
"We need to further adapt to the long-term constraints imposed by the list of entities, while also addressing the impact of the ongoing coronavirus pandemic," Liang Hua, chairman of the board, said in a report posted on the company's website.
Vincent Pang, head of Huawei's business in Western Europe, said about the company's financial results for 2019: “Consumer business was the main business of our growth,” and described 2019 as a major challenge for the company.
The company blamed the blacklist for declining its expected revenue by about $ 12 billion, and said we had not achieved our revised goals, which were $ 135 billion, and we had lost $ 12 billion.
The Consumer Business Unit, which includes smartphones and laptops, accounted for more than 54 percent of the company's total sales in 2019, and despite being the most affected unit, it generated revenues of $ 66.93 billion, or $ 10 billion less Than what the company was targeting.
The company's sales in China increased by 36.2 percent, while revenues from the Asia Pacific region excluding China declined by 13.9 percent, while sales in Europe and the Middle East grew by only 0.7 percent.
Huawei dominated smartphone sales in China, gaining 38.5 percent of the market in 2019 compared to 27 percent a year earlier, in part due to the increased national sentiment after the company came under increasing pressure from the United States.
