Original title: Huawei's third quarter data surprised many parties
Chinese telecom giant Huawei Technology Co., Ltd. announced its operating results for the third quarter of 2019 on the 16th. According to the data, Huawei's revenue in the first three quarters of this year increased by 24.4% year-on-year to RMB 610.8 billion. Analysts said that since it was included in the list of entities by the United States in May this year, there has been speculation that Huawei's business development may suffer a heavy blow, but the latest performance report overturned this speculation. Huawei's business still developed stably and achieved double-digit revenue growth.
According to the business performance report released by Huawei, in the first three quarters, the company achieved a sales revenue of RMB 610.8 billion, a year-on-year increase of 24.4% and a net profit margin of 8.7%. Bloomberg 16 reported that Huawei hedged the U.S. ban through strong growth in smartphone sales. Data show that Huawei's smartphone business maintained steady growth, with shipments of more than 185 million units in the first three quarters, a year-on-year increase of 26%. In addition, Huawei's 5g and cloud services support the strong development of the enterprise.
In May, the US Department of Commerce listed Huawei as an entity on the grounds of national security. The Wall Street Journal said that although this prevented some American technology from flowing to Huawei, Huawei said it had hoarded inventories of American made components, implemented alternative sources of other components, and was investing in independently developed chip technology to reduce its dependence on foreign technology.
Under the pressure of the United States, Huawei's revenue still increased significantly. Huang Haifeng, deputy editor in chief of the whole media of the communication world, said in an interview with the global times on the 16th that this shows the resilience of Huawei. Huawei took precautions and considered the sustainable development of its business as early as 10 years ago. Huawei also has strong innovation capability and is self-sufficient in core products and components. In addition, suppliers outside the United States, including Chinese enterprises, also seize the opportunity to actively cooperate with Huawei to replace the products of American suppliers.
Huawei is under great pressure this year. Washington is lobbying European allies to prohibit Huawei from participating in their 5g construction. But Germany, France and Ireland have said they have no intention of banning any suppliers. The Wall Street Journal reported that the German Federal Network Administration released an extensive draft of new security requirements for telecommunications networks on Tuesday. According to the draft, Germany will not completely exclude Huawei Technology Co., Ltd. or other suppliers from providing components for 5g Internet.
The above draft of Germany immediately triggered an attack by Strayer, Deputy Assistant Secretary of state for network and international communications of the U.S. State Department. He said that if Germany allowed Huawei to participate in its 5g network construction, the United States would reassess its relationship with Berlin in intelligence sharing and other security aspects.
According to Huawei's data, up to now, Huawei has signed more than 60 5g commercial contracts with the world's leading operators. Huang Haifeng said that the products and solutions provided by Huawei have advantages in performance and delivery. From the perspective of equipment supply, Huawei can completely leave American suppliers to ensure the manufacturing and supply of 5g equipment. In addition, from the perspective of global 5g development, China will have the largest demand for 5g equipment, which is expected to account for more than half of the world.
Ren Zhengfei, founder of Huawei, said earlier that Huawei had filled all the 'holes' in the line from 5g to the core network, the US' technode' website said on the 16th. This shows that the US government's ban on Huawei has limited effect. Ren Zhengfei also said that Huawei is ready for the United States not to cancel the "entity list" for a long time.
Huang Haifeng believes that Huawei has the confidence to "fight a long-term battle" because Huawei has ensured the supply of products and solutions through self-research and open cooperation with leading global enterprises. Corporate customers and consumers in the global market also have their own choices. They are willing to choose to cooperate with leading enterprises to achieve business success or excellent product experience.
The Financial Times said that Huawei might have continued to use Google's ecosystem, but now Huawei and other companies are forced to challenge the dominance of Google's ecosystem to ensure their survival. The result of the US ban on Huawei is obviously not "America first" as president trump said. On the contrary, it may mean that the United States will eventually come to the bottom.