Despite U.S. warnings to allies, Huawei expects revenue to rise 21% this year to over $100 biillion
Huawei has already announced that it has exceeded its target and shipped more than 200 million handsets in 2018. But how does this achievement translate into top line growth for the beleaguered Chinese manufacturer? According to Reuters, Huawei's rotating chairman, currently Guo Ping, says that the company's revenue will hit $109 billion this year. That is a 21% hike from last year and is the highest growth rate for the firm in two years. This year also marks the first time that Huawei has surpassed $100 billion in revenue.
The high growth is occurring despite warnings from the U.S. government to its allies not to use Huawei phones or network equipment. Since 2012, Huawei gear has been considered a threat to U.S. national security with fears that its devices and components could send confidential information to the Chinese government. And with many carriers outside of the states building out their 5G networks, the U.S. worries that many will use Huawei networking equipment. In fact, the company has 25 contracts to build 5G networks globally. Huawei is the largest supplier of such equipment worldwide, and is also the second largest smartphone manufacturer worldwide after Samsung.
Last week, speculation arose that President Donald Trump will sign an executive order next month that would ban U.S. companies from using telecom equipment from Huawei and its fellow Chinese manufacturer ZTE. Both companies deny using their equipment to spy on consumers and businesses in other countries.