Huawei, the Chinese telecommunications giant, has seen a significant surge in profits for the first quarter of this year, according to a company filing. The US-approved company has been steadily rebounding and is now starting to bite into Apple’s sales in the country.
However, Huawei’s success hasn’t come without challenges. The company has found itself caught in the middle of a technological rivalry between Beijing and Washington. The US government has raised concerns that Huawei’s equipment could be used for Chinese espionage operations, allegations that Huawei vehemently denies.
In 2019, the United States imposed a series of sanctions on Huawei, severely restricting its ability to obtain US-made components. This had a direct impact on the company’s smartphone production. In response, Huawei has made efforts to diversify its business by venturing into other fields such as 5G, artificial intelligence, and smart-driving technologies.
According to a report published by Huawei’s holding company on its official website, the company’s net profit for the first quarter of this year was $2.7 billion, a staggering increase of 564 percent compared to the same period last year. The company also reported a 36.7 percent increase in revenue to $24.7 billion during the same period.
It is worth noting that Huawei is a privately owned and unlisted company, which means it is not obligated to publish detailed financial information like other large companies. This lack of transparency raises questions about the breakdown of profits by industry.
Experts have pointed out that it would be impossible for Huawei to produce its flagship Mate 60 Pro without the use of foreign technologies. This raises doubts about the effectiveness of US restrictions on the company. In what appears to be a snub to Washington, Huawei announced the Mate 60 Pro in August 2023 while Gina Raimondo, the head of the United States Department of Commerce responsible for sanctioning China, was in China.
Meanwhile, Huawei’s rival, Apple, experienced a decline in iPhone sales by 19 percent in China during the first quarter of 2023, according to market research firm Counterpoint. This decline in sales coincided with Huawei’s announcement that it would more than double its profits for the year. It seems that Huawei’s continued diversification of its business model has allowed it to seize opportunities in digitalization, intelligence, and decarbonization, leading to increased revenues.
Despite the ongoing tension between Beijing and Washington, with the two largest economies competing in various areas, Huawei remains confident about meeting its annual business targets and achieving sustainable growth. The company’s representative stated that they are confident in their ability to continue seizing opportunities and grow their business.
In response to concerns about Chinese influence in telecommunications, the United States has been urging its allies to follow its example and ban Huawei’s 5G technology from domestic telecommunications networks. The US believes that China may use this technology to monitor international communications.
In other news, Meta, the parent company of Facebook, has recently launched a limited-time bonus program to boost engagement on its Threads platform. This move aims to increase user activity and enhance the platform’s overall experience.