Huawei Technologies on Tuesday said its full-year revenue would likely jump 18% in 2019 to 850 billion yuan ($121.72 billion), lower than its earlier projections, as a U.S. trade blacklisting curbed growth and disrupted its ability to source key parts.
The world’s biggest maker of telecom network equipment and the No. 2 manufacturer of smartphones, was all but banned by the United States in May from doing business with U.S. companies, preventing its access to technology like Google’s Android operating system.
The U.S. government alleges Huawei equipment pose national security risks because they could be used by the Chinese government to spy on users. Huawei has repeatedly denied its products are a security threat.
Huawei’s Rotating Chairman Eric Xu revealed the numbers in a New Year’s message to employees and customers in which he also forecasted 2020 to be a “difficult year’, saying that the firm was unlikely to grow as rapidly as it did in the first half of this year.
Its estimate of 18% revenue growth in 2019 is less than 2018, when Huawei’s annual revenue rose 19.5%.
The company did not break down fourth-quarter figures but according to Reuters calculations based on its previous statements, revenue in the quarter to end Dec. 31 rose to 239.2 billion yuan ($23.28 billion), up 3.9% from a year earlier and slower than the 27% increase it reported in the third quarter.
“The external environment is becoming more complicated than ever, and downward pressure on the global economy has intensified,” he said.
“In the long term, the US government will continue to suppress the development of leading technology – a challenging environment for Huawei to survive and thrive.”
Xu also said that Huawei shipped 240 million smartphones this year, a 20% increase from 2018. Huawei has mainly sold smartphones that were launched before the ban.
The newest Mate 30 smartphone first went on sale in September but it cannot access a licensed version of Google’s Android operating system because of the trade curbs.
Xu said in his letter that Huawei would in 2020 “go all out” to build its Huawei Mobile Services ecosystem, which comprises services such as cloud storage and an app gallery, describing it as “the foundation of our ability to sell smart devices in markets outside China”.
It is also developing its own mobile operating system known as Harmony, although analysts are skeptical that the system is a viable alternative.
Huawei’s reputation was dented earlier this month after details of the dismissal and wrongful detention of a former employee went viral.
In his letter, Xu said they would continue to remove mediocre managers and complacent employees as Huawei needed to rid the company of complacency, and that they would remove managers performing in the bottom 10% every year.
Latest Stories
-
Shamima Muslim urges youth to lead Ghana’s renewal at 18Plus4NDC anniversary
45 minutes -
Akufo-Addo condemns post-election violence, blames NDC
53 minutes -
DAMC, Free Food Company, to distribute 10,000 packs of food to street kids
2 hours -
Kwame Boafo Akuffo: Court ruling on re-collation flawed
2 hours -
Samuel Yaw Adusei: The strategist behind NDC’s electoral security in Ashanti region
3 hours -
I’m confident posterity will judge my performance well – Akufo-Addo
3 hours -
Syria’s minorities seek security as country charts new future
3 hours -
Prof. Nana Aba Appiah Amfo re-appointed as Vice-Chancellor of the University of Ghana
4 hours -
German police probe market attack security and warnings
4 hours -
Grief and anger in Magdeburg after Christmas market attack
4 hours -
Baltasar Coin becomes first Ghanaian meme coin to hit DEX Screener at $100K market cap
4 hours -
EC blames re-collation of disputed results on widespread lawlessness by party supporters
5 hours -
Top 20 Ghanaian songs released in 2024
5 hours -
Beating Messi’s Inter Miami to MLS Cup feels amazing – Joseph Paintsil
5 hours -
NDC administration will reverse all ‘last-minute’ gov’t employee promotions – Asiedu Nketiah
5 hours