Huawei First Quarter Sales Up By 39 Percent
In a recently released report, Chinese tech giant Huawei shared that its revenue rose by 39 percent for the first quarter of the year compared to its performance during the same period last year. Huawei's impressive sales growth came at a time when the company is highly criticized by the United States over issues of security risks. The U.S. even went as far as convincing its allies to ban, if not regulate, Huawei's business in their territory.
Huawei is widely held as the world's largest manufacturer of network equipment for internet companies and phones. On Monday, the tech giant reported revenue of 179.7 billion Yuan for the first three months of the year, which is an equivalent of about $26.8 billion.
Huawei is also hailed as one of China's first major tech companies to venture out of its home country. Recently, the United States called on its allies to avoid Huawei equipment. The superpower also threatens to block access to Europe and a number of other markets as networks and carriers are starting to invest billions of dollars on next-generation communication infrastructures.
On a number of several occasions, Huawei has denied the accusations of the United States over claims that it is complicit to spying activities of China.
Huawei did not release its quarterly earnings. However, the tech giant said that its profit margin was 8 percent. Market experts estimate that this will amount to about 14.4 billion Yuan or $2.1 billion.
Huawei's recent revenue growth defied expectations. Experts have forecasted Huawei's growth to around 19.5 percent. Huawei reported annual sales of 721.2 billion or around $105.2 billion
Further improving its standing a leader in the race towards 5G technology. As of February, the company was able to close 40 commercial contracts to build 5G infrastructures for some of the world's leading carriers. Huawei also said that the company was able to ship more than 70,000 5G base stations on several countries around the world.
For comparison, Ericsson, one of Huawei's toughest competitor in the 5G business told CNN that it has successfully closed 18 contracts for 5G deployment. The company added that it was also able to ship 3 million base stations around the world with hardware support for the 5G technology.
Finally, Huawei set a historic precedent as being the first company to build a 5G telematics module for cars. The company also deployed the first 5G-enabled access point for Wi-Fi 6, a new standard of wireless communication that can boost a network's bandwidth by up to four times.