Huawei: sales up in 2019, but the Chinese anticipates a difficult 2020

[ad_1]

3

Huawei is in good shape despite opposition from Washington and questions from the European Union about the deployment of 5G. The manufacturer experienced strong sales growth in 2019, but anticipates a more contrasted 2020 year.

After a busy 2019 year in business and turpitude, Huawei is still doing quite well. According to the latest figures revealed by the Shenzhen company, its sales have not been much affected by the various problems. In a letter to employees, one of the CEOs, Eric Xu, revealed that 2019 revenue grew 18% to peak at 850 billion yuan (about 109 billion euros).

An impressive result, even if it is a little below the initial projections of the company. In 2018, sales growth was 19.5%. The company is also said to have sold 240 million smartphones, an increase of 20% compared to 2018. Reuters note in an article that Huawei would have mainly sold its smartphones before the North American sanctions.

Proof of the relative good health of Huawei's sales, the Mate 30 series, the brand's last flagships, has sold more than 12 million copies since its launch last September. Impressive figures for a smartphone without Google services, but that must be put into perspective. Indeed, the weight of Huawei in China is to be linked to the increase in its sales. In the third quarter of 2019, Huawei held more than 42% market share in the Middle Kingdom. Thus, the success of the company's sales would undoubtedly be less important without this disproportionate Chinese market, which does not care about Google services. For the Mate 30 series, Huawei hopes to sell around 20 million devices. After having shipped 5 million between November and December, this objective is not completely improbable.

Recommended item: Huawei – Store opening, P40 launch: does the Chinese believe in its chances in Europe?

2020: annus horribilis or Chinese bluff?

According to Reuters, in the fourth quarter of 2019 Huawei's growth would have slowed down sharply enough to only increase by 3.9%, against an increase of 27% in the previous quarter. Mr. Xu was quite pessimistic in explaining that, in the long term, the US sanctions could jeopardize the sustainability of Chinese society. The coming year would then be very difficult for the company, but Eric Xu believes that adversity can help Huawei to move forward: “The US government campaign against Huawei is strategic and long term. It is a great opportunity for us to motivate and build muscle. A great opportunity for us to be more united as a team and to develop the capacities we need to better face future challenges. ” It seems that the standoff between the firm and the United States turns a lot into the game of dupes; very clever who can announce the winner.

In 2020, Huawei will further accelerate the development of its mobile services with a view to offering a real viable alternative to Google, which seems to be the key to establishing itself sustainably outside of China. Likewise, Huawei is putting even more emphasis on 5G. Already a leader in the field of equipment for this technology, the company intends to remain so by increasing the number of contracts with international operators, notably European, sometimes to the chagrin of local authorities.

[ad_2]