Huawei’s Sales Jump Despite Trump’s Blacklisting


BEIJING — Just a little over two months after Huawei’s chief govt started evaluating his embattled firm to a bullet-riddled fighter aircraft, the Chinese tech big mentioned its gross sales for January via June grew by almost 1 / 4 from a 12 months earlier, an indication that the Trump administration’s clampdown has hardly introduced the corporate crashing to the bottom.

“Neither production nor shipment has been interrupted, not for one single day,” Liang Hua, the chairman of Huawei’s board of administrators, mentioned on Tuesday on the firm’s headquarters within the southern metropolis of Shenzhen. “No matter how many difficulties we might face, we remain confident in the company’s future development.”

The sturdy outcomes, with income of round $58 billion for the primary half of the 12 months, testify to the breadth of Huawei’s enterprise, which now spans smartphones and laptops, tools and software program for wi-fi networks, cloud computing providers, metropolis surveillance gear and extra. Last 12 months, the corporate generated round $105 billion in gross sales, greater than China’s two best-known web giants, Alibaba and Tencent, mixed.

Still, Huawei’s troubles with Washington haven’t left it unscathed. Its smartphone gross sales outdoors China plummeted after the Trump administration restricted the corporate’s entry to American expertise in May, although Mr. Liang mentioned that that they had since recovered considerably. The 12 months’s second half is perhaps tougher than the primary, he mentioned.

Before long, though, some American tech companies decided that they could resume selling certain items to Huawei despite the blacklisting. Their lawyers determined that Washington’s restrictions did not apply to hardware that was manufactured outside the United States and that did not contain much in the way of sensitive American components and technology.

“Once we determined that we could continue to resume most of those products, it really got back to normal pretty quickly,” Dave Pahl, the head of investor relations at the chip maker Texas Instruments, said during a conference call with analysts last week.

Then, after meeting with China’s top leader, Xi Jinping, in Japan last month, President Trump said the administration would permit more American sales to Huawei, in a gesture meant to smooth the path toward a trade deal.

Huawei cannot breathe easy, however. The Commerce Department still has not indicated exactly how it will decide who gets licenses to sell to the company. American trade negotiators were in Shanghai on Tuesday to try once more to piece together an accord.

Some of Huawei’s American partners have already started making potentially hard-to-reverse changes to their operations in response to the blacklisting. The electronics manufacturer Flex said last week that it had scaled down its activities in China for supplying Huawei.

At the news conference on Tuesday, Mr. Liang said that Huawei’s ability to supply equipment for next-generation 5G wireless networks had not been affected by the Commerce Department’s restrictions. The company had made adequate preparations in advance, he said.

In fact, he said, Huawei has signed 11 additional 5G contracts since the May blacklisting, bringing the total number of 5G contracts for the company to 50, across 30 countries.

Mr. Liang also said on Tuesday that Huawei’s smartphones sales outside China had recovered to some degree since the blacklisting. In the immediate wake of the Commerce Department’s action, many phone buyers in Europe and other places shied away from Huawei handsets out of concern that the devices would not be able to run Google’s Android operating system and other Google apps.

Huawei’s handset sales have been surging in China, where many Google services are blocked anyway. But for the rest of the world, it remains unclear whether the Silicon Valley giant will be given permission to serve Huawei smartphone users. Mr. Liang acknowledged that Huawei still had work to do to ensure the health of its consumer device business, which accounted for over half the company’s revenue in the first six months of the year.

“If the U.S. allows us to use Android, then using Android and its ecosystem is always our preferred choice,” Mr. Liang said. If not, he said, then Huawei is capable of developing and deploying its own replacement operating system, although he declined to give details about the company’s efforts in this area.

For many years, Huawei’s chief executive, Mr. Ren, was a reclusive figure who almost never spoke to reporters. Of late, he has been a near-constant presence in the global news media, sounding exuberant about his company’s prospects for surviving Mr. Trump’s onslaught.

Speaking this month with a group of Italian journalists, Mr. Ren boasted that Huawei had already patched up 70 to 80 percent of what he called the “bullet holes” in its products — the ways in which they relied on American-sourced parts or technology.

By the end of the year, he predicted, Huawei will have filled more than 90 percent of these holes.

“We can stand on our own right now,” Mr. Ren said. “We don’t need to depend on the U.S. to continue serving our customers. The more advanced a system is, the more capable we are of standing on our own.”



Source link Nytimes.com

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