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Huawei profit jumps, but 2020 may be 'difficult'

Credit: Reuters Studio
Published on December 31, 2019 - Duration: 01:39s

Huawei profit jumps, but 2020 may be 'difficult'

The Chinese technology company announced full-year revenue to $121 billion, lower than its earlier projections, as a U.S. trade blacklisting curbed growth and disrupted its ability to source key parts.

Olivia Chan reports.

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Huawei profit jumps, but 2020 may be 'difficult'

Chinese tech giant Huawei appears to be thriving even under bans from the U.S. and its allies.

The company said Tuesday (December 31 2019) its 2019 revenue would likely jump a record 18 percent.

Huawei's rotating chairman Eric Xu revealed the estimated $121 billion US dollars in revenue within a New Year's message... However, that was mostly thanks to the first half of 2019 and he forecasted 2020 would be a "difficult year.'

Xu warns that the firm was unlikely to grow as rapidly.

It's been a year of pressure from Washington, which alleges Huawei gear poses a national security risk.

They say it could be used by Beijing to spy on users.

Huawei has repeatedly denies these claims. The U.S. hit Huawei with two criminal indictments, including charges against chief financial oficer Meng Wanzhou.

Meng was arrested in Canada, where she faces extradition to the U.S. Then in May, Washington placed Huawei on a trade blacklist.

That stops American companies from selling their own equipment to Huawei.

The ban in turn undermined Huawei's ability to source key parts for its its smartphones plus, access to crucial software including Google's Android.

But Huawei remains the world's second biggest maker of smartphones behind Samsung.

In Xu's message he points out development of Huawei's own operating system it calls "Harmony." The U.S. has continued to discourage allies from using Huawei's equipment for next generation 5G networks.

But so far only Australia, Japan and New Zealand have followed suit.

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