Huawei has reported a 13.1-percent year-on-year (YoY) growth in revenue in the first half of 2020. The company generated total revenue of 454 billion Chinese yuan (about $64.9 billion) during the first six months of the year.
Its carrier, enterprise, and consumer businesses achieved 159.6 billion Chinese yuan, 36.3 billion Chinese yuan, and 255.8 billion Chinese yuan in revenue, respectively. It had generated 401.3 billion Chinese yuan in revenue over the same period last year.
Huawei also increased its net profit margin from 8.7-percent to 9.2-percent over that period, the company said in its 2020 H1 business results on Monday. However, its growth rate was down significantly from 23.2-percent in the first half of 2019. The Chinese giant had seen an even bigger 39-percent YoY increase in Q1 last year.
The Trump administration placing Huawei in the Entity List in May 2019 has stunted the company’s growth.
It hasn’t enjoyed the same levels of success since. The US sanctions have only grown stronger since the first strike last year. If not for those trade restrictions, Huawei looked destined to overthrow Samsung as the world’s largest smartphone vendor for once and all.
Huawei did recently topped Samsung as the largest smartphone vendor in the world. But that’s more of Samsung’s decline than Huawei’s rise.
The COVID-19 pandemic mostly affected the South Korean giant in the second quarter this year. Samsung is likely to regain the throne once smartphone demands surge globally.
Businesses in China, meanwhile, resumed operations long back after a couple of months of lockdown measures early in the year. Huawei sold a good number of phones there in the second quarter to topple Samsung. In the first quarter this year, when the pandemic was at its height in China, the company saw just a 1.4-percent YoY hike in revenue.
Huawei posts 13 percent revenue growth but faces more troubles
Huawei’s troubles aren’t limited to its smartphone business. While the Trump Administration has extended the trade ban until May 2021, the UK may soon join the force against the Chinese smartphone and telecom equipment giant.
The UK officials may retract on their decision to allow Huawei equipment in non-core portions of the nation’s 5G networks. The nation’s National Security Council will meet today to decide on the matter.
Huawei is riding high on the back of an increased patriotic sentiment in its home country following the US ban last year.
A majority of its impressive business numbers are generated from within China. But with possibly more troubles coming its way, there’s now little room to grow for the company.