The Chinese network equipment supplier and smartphone manufacturer Huawei increased its sales and profits slightly last year despite the tougher US sanctions.
Both values were in line with expectations, said Chairman of the Board of Directors Ken Hu at an industry conference in Shanghai on Tuesday. “Huawei faced some extraordinary difficulties last year,” said Hu. The Chinese company plans to publish exact figures in March. While Huawei only ranks fifth as a smartphone manufacturer according to IDC market observers, Apple recaptured the throne in the Christmas quarter.
US sanctions are making business more difficult for Huawei. In 2019, the company was put on a black export list by former US President Donald Trump. The USA have significantly restricted deliveries to the group. The delivery bottlenecks meanwhile affect the production of the in-house Kirin chips. Company founder Ren Zhengfei has already expressed the hope that the new US administration under Joe Biden will pursue an “open policy”.
The US accuses the company of maintaining ties to the government in Beijing and suspects that Huawei offers a kind of back door for spies to gain access to state or company secrets. Huawei rejects this. Most recently, the company has already drawn conclusions from the increasing problems and sold the cheap smartphone brand Honor. According to insiders, Huawei is also currently negotiating the sale of its luxury smartphone brands Mate and P.