Daily Management Review

Huawei increases purchases of US technology despite sanctions


Last year, China's Huawei Technologies increased spending on US technology by 70%, despite being blacklisted in the United States. This was announced by the current chairman of the company Eric Xu in an interview with the Financial Times.

Kārlis Dambrāns
Kārlis Dambrāns
According to him, in 2019 the company spent $ 18.7 billion on purchasing components from American manufacturers. A year earlier, this figure was $ 11 billion.

Although Huawei is actively developing its own chips, applications and services, it does not want to stop using US technology, Xu said.

At the same time, he acknowledged that US efforts to limit the company's business significantly affected its financial results.

According to a press release from Huawei, its net profit for 2019 increased by 5.6%, to 62.7 billion yuan ($ 8.83 billion) from 59.3 billion yuan a year earlier. However, the growth rate slowed down compared to 2018, when net profit jumped 25%.

Huawei's revenue last year grew by 19%, to 858.8 billion yuan, which was facilitated by a 34% increase in sales of the consumer segment, including smartphones and other gadgets.

Most of the revenue growth came from China, where sales increased 36.2%, to 506.7 billion yuan. At the same time, revenue in the Asia-Pacific region, excluding China, fell by 13.9%, while in Europe and the Middle East, sales grew by only 0.7%.

In 2020, the company may face "even greater difficulties" due to US restrictions, as well as the consequences of the ongoing coronavirus pandemic, said Huawei Chairman of the Board of Directors Liang Hua in a statement posted on the company's website.

source: ft.com