Huawei’s Profit Surges 564%, Biting Into Apple’s Market Share

(CTN News) – Huawei’s first-quarter profits surged more than fivefold year-over-year, a company filing showed Tuesday, as the US-approved company continues its rebound and bites into Apple’s sales in the country.

It has found itself caught in the middle of an intense technological rivalry between Beijing and Washington, which has said Huawei’s equipment may be used for Chinese espionage operations, allegations that Huawei denies.

A series of sanctions imposed by the United States in 2019 severely restricted ability to obtain US-made components at the time, hampering its production of smartphones. Consequently, the Shenzhen-based company has attempted to revive sales by diversifying into other fields, such as 5G, artificial intelligence, and smart-driving technologies.

A report published by Huawei’s holding company on an official website and confirmed by a company representative indicates that Huawei’s net profit for the January-March period was $2.7 billion, an increase of 564 percent from last year’s first quarter.

It also reported a 36.7 percent increase in revenue to $24.7 billion during the period, according to the filing.

The report did not provide a breakdown of profits by industry.

It is important to note that Huawei is a privately owned, unlisted company and as such is not subject to the same obligations of publishing detailed financial information as other large companies.

According to experts, it would be impossible to produce the Mate 60 Pro without the use of foreign technologies, calling into question the effectiveness of US restrictions.

In what appears to be a snub to Washington, the Mate 60 was announced in August 2023 at the same time Gina Raimondo, head of the United States Department of Commerce that was responsible for sanctioning China, was in China.

In the first quarter of 2009, Huawei’s rival Apple saw iPhone sales decline by 19 percent in China, Bloomberg reported, citing market research firm Counterpoint.

In a month’s time, Huawei announced it would more than double its profits in 2023,

A year in which the company continued to diversify its business model. In the first quarter, Huawei’s revenues increased as a result of “seizing opportunities in digitalization, intelligence, and decarbonization”, a representative told AFP.

According to the representative, “we are confident that we will be able to meet our annual business targets and achieve sustainable growth.”

There is still a high level of tension between Beijing and Washington, as the two largest economies of the world compete over everything from trade to Taiwan.

In response, the United States has urged allies to follow its example and ban Huawei’s 5G technology from domestic telecommunications networks, believing China may use it to monitor international communications.

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