Last year, Huawei Technologies Co, a Chinese technology company, faced arguably its most significant test in its 30-year history.
As the US strengthened its efforts to constrain Huawei’s global business, the company faced litigation, trade restrictions, spying charges, and measures to ban the use of its equipment in 5G network rollout.
However, the company’s recent sales data reveal that, thanks to the efforts of its 190,000 employees and years of research and development prowess, the company, situated in Shenzhen, Guangdong province, was able to overcome these difficulties.
Huawei announced that its revenue for the previous year will reach 850 billion yuan ($122 billion), a new high and an increase of 18 percent year over year.
In a public letter, the company’s rotating chairman, Xu Zhijun, said: “Despite the US government’s best attempts to hold us down, we’ve made it to the other side. Despite the fact that these figures are lower than our early estimates (of $125 billion), business remains strong and we remain resilient in the face of adversity.”
Last year, Huawei’s carrier business group, which supplies equipment to global telecom carriers, won over 60 5G contracts.
Despite Washington’s efforts to dissuade its friends from utilising Huawei equipment in 5G rollout plans, it has gained the trust of international carriers.
In addition, the company’s smartphone business remained strong. It maintained its position as the world’s second-largest smartphone provider last year, selling almost 240 million phones, up nearly 17% from 206 million in 2018.
Huawei is well aware that this year will be difficult. Xu stated that the company will have to keep working hard because it does not anticipate to be removed on Washington’s Entity List, which effectively prevents it from purchasing critical US products for its smartphones and telecom equipment.
Xu wrote, “It’s going to be a challenging year for us.” “The external environment is growing more difficult than ever before, and downward pressure on the world economy has become more intense.”
According to the corporation, growth will be slower this year than it was in the first half of 2019. “We will rely solely on our people’s hard work, as well as our customers’ and partners’ continued trust and support,” Xu stated. “Our primary priority will be survival.”
He stated that Huawei will “need to go all out” to establish the Huawei Mobile Services ecosystem, which is the foundation for the company’s capacity to sell smart devices in international markets.
Bai Ming, a senior research fellow at the Chinese Academy of International Trade and Economic Cooperation, said Huawei will also strengthen its self-developed operating system Harmony, in case the US government continues to prohibit the company’s access to Google’s Android operating system in handsets.
Huawei said it will vigorously exploit all opportunity to push global adoption of the superfast technology this year, as it will be a turning point for large-scale building of 5G networks. The company has already begun exporting 5G base stations around the world, with no US components.
Sunrise, Switzerland’s second-largest telecom company, is using the stations in its 5G networks, for example.
Sunrise CEO Olaf Swantee said no company wants to get involved in politics, and he sees Huawei as a “wonderful partner.”
“Huawei is committed and responsive to ensuring that our network is defect-free,” Swantee stated.
This kind of faith will help the company weather the storm, which is expected to be stronger this year.
“We are the bamboo stalk that rises strong and proud against all winds, whether from the north, south, east, or west,” Xu explained.
Huawei’s internal site frequently employs the phrase “Heroes are formed, not born,” which encapsulates this spirit.