There are companies that defy logic, and what happens to them sometimes raises some questions. Recently, one of these anomalies has become Huawei. The company has been under sanctions for over a year. Moreover, they are constantly expanding. But it seems that the Chinese are not very annoying. Not only did they outstrip the thriving Samsung in smartphone sales, but they also managed to improve their financial performance. What is going on? Maybe the company or its partners forgot to tell that they are under sanctions? Or maybe we just don't know something in big politics and big business. But the fact remains – revenues Huawei increased in the first half of this year.
Huawei it's tough right now. Or not?
US Sanctions Against Huawei
As practice shows, doing business in difficult conditions does not always mean that a company should fail. At least this may not happen immediately. On the other hand, competent management actions can, on the contrary, strengthen it and lead to the fact that over time it will only become stronger. Of course, as a rule, it is the other way around, but it is not for nothing that Huawei is ranked among the famous Chinese economic miracle.
Large companies regularly publish reports on their activities. This is the norm and almost everyone does it. So Huawei did it, which surprised the common public a lot.
How much does Huawei earn
The company just reported RMB 454 billion (about $ 64.9 billion) in revenue for the first half of 2020. This is about 13.1 percent more than in the same period last year.
But that's not all. In addition to the increase in revenue, the company's profit also increased, which this time in relative terms was 9.2 percent versus 8 percent last year.
The report has not yet been checked by auditors, but you should not expect that it will change diametrically opposite, at most there will be some minor deviations. The company itself has not yet provided detailed comments on the report, but expressed the opinion that the COVID-19 pandemic was not as devastating for it as it was for other companies.
Huawei stands exactly in the middle in the rivalry between China and the United States /
Why Huawei is still working
The company said communications and information technology have become a “critical tool” both to fight the virus and accelerate economic recovery. It's hard to disagree with that, especially considering that smartphones aren't the company's only business. In addition, she is a world leader in telecommunications, and even partially sanctions were lifted from this business so that Huawei could help develop networks 5G in the United States. Great Britain is also ready to reconsider its decision. All this brings additional money to the company.
Despite good results in the second quarter, the company had very weak financials in the first quarter, and profit growth was very insignificant. All because of the very pandemic that forced all companies to sharply reduce the volume of consumer products and even close some stores. At the same time, Huawei suffered the most, since the most serious measures were taken in China, which is the company's main market.
At the same time Xiaomi was the only company that could not lose in sales. This is most likely due to the fact that many fans Huawei outside of China have switched to products with the “Mi” logo. Now that everything is relatively fine, Huawei started to increase sales again, and it was not only able to outstrip Samsung in smartphone sales in the world, taking first place, but also greatly improve its own financial results.
How are you Huawei
As a result, one cannot say that the first quarter turned out to be bad for Huawei, but the second one turned out to be generally excellent. Especially against the background of how she is doing now. In the context of sanctions and a pandemic, showing growth is worth a lot. Of course, if all this were not there, the indicators would be even more impressive, especially against the background of the fact that Huawei recently showed two very good smartphone models – Huawei P40 and Honor 30.
This smartphone would have been a hit if not for the sanctions and the ban on working with Google.
If they were full-fledged devices with Google services, they could become real bestsellers, but without them, much less people need these devices. Although, even in our comments and in the Telegram chat, many of our readers agree that even the capabilities that AppGallery gives and installing applications through APKs are enough for most users.
The opinion of one of the readers on the situation with Huawei.
It only remains to add that 13.1 percent growth is very good, but not as good as it was a year earlier. Then the company's revenue increased by 39 percent at once. Now, without access to large markets such as the United States and a number of European countries, the company may not have such a large potential for growth. Although, it is partly saved by China with its seemingly endless resources for growth. In the meantime, we can say that such growth, which for many is the ultimate dream, will satisfy the company's management. After all, this could not have happened.