Huawei says it will generate a record revenue despite US sanctions

Person in the News for web - Ren Zhengfei
Huawei CEO Ren Zhengfei is leading the company to be the telecom giant. Source: FT
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Daily US Times, Shenzhen: Chinese telecom giant Huawei says it is likely to make a record $122 billion in annual revenue despite US sanctions.

The company’s rotating chairman Eric Xu said the figure in a New Year’s Eve message to employees, the Guardian reports.

Though the figure falls short than the previous prediction. In January 2019, the company said they expect $125 billion in revenue in 2019. The company seems happy with the outcome as Xu $122 billion would still represent an 18% increase in its annual revenue for 2018.

After the US put sanctions on Huawei in May last year, many analysts predicted that it will impact heavily on the company’s revenue.

In May, the US puts Huawei in its so-called Entity List. Companies on this list are barred from conducting business with US firms unless those US firms obtain a special government license.

One major consequence of US sanctions is the lack of Google apps on its latest smartphones. Huawei was forced to launch its flagship Mate 30 series in September without any Google apps or services, which has seriously hampered the phone’s marketability outside China.

Trump administration has long claimed Huawei’s equipment could be used for spying and poses a threat to its national security. Huawei always denied this accusation.

The US later granted Huawei a limited reprieve on a full trade ban until February, allowing rural US networks some time to move their mobile network equipment away from the Chinese firm.

Mentioning the issue, Xu said the US government was waging a “strategic and long-term” campaign against the firm which would ultimately create a “challenging environment for Huawei to survive and thrive”.

He said surviving will the company’s main priority.