Huawei Technologies today revealed that its sales from its carrier business dropped in 2018 from 2017 in the wake of growing concerns about security.
Huawei Technologies has reported 19.5 percent increase in revenue to 721.2 billion yuan or $107.13 billion in 2018.
Huawei generated revenue of $43.72 billion from carrier business, $51.89 billion from consumer business and $11.06 billion from enterprise business in 2018.
Sales in its carrier business reached 294 billion yuan or $43.72 billion as compared with 297.8 billion yuan in 2017.
Huawei’s consumer business revenue increased 45.1 percent to 348.9 billion yuan or $51.89 billion – powered by the success in smartphone business in its home market China and other markets.
The sales revenue of Huawei’s enterprise business reached 74.4 billion yuan or $11.06 billion, up 23.8 percent, mainly driven by digital transformation deals.
Consumer business contributes the biggest share of Huawei’s revenue. Earlier, carrier business was the dominant contributor to Huawei revenue. Since Huawei is struggling to sell 5G network equipment in US and European markets, its carrier business will face significant pressure to ensure growth.
The above telecom statistics report prepared by research agency Dell’Oro Group shows the telecom network market share of Huawei, Nokia, Ericsson, Cisco, ZTE and Samsung for the year 2018.
Huawei’s profit rose 25 percent to 59.3 billion yuan or $8.8 billion powered by performance in its home market and a booming smartphone business.
Shenzhen-based Huawei’s net profit rose 28 percent in 2017 and 0.4 percent in 2016.
The outlook for Huawei is clouded by U.S. accusations that its telecoms network equipment could be used for spying by the Chinese government and calls to allies from Washington to ban Huawei from building next-generation mobile networks.
The company expects revenue to jump to $125 billion in 2019.
This is for the first time that Huawei’s revenue surpassed the $100 billion mark, despite political headwinds from around the world, CNBC reported. The revenue growth was faster than that seen in 2017, but the net profit rise was slightly slower.
Earlier this month, Huawei filed a lawsuit against the U.S. over a law that bans government agencies from buying the Chinese technology giant’s equipment, claiming the legislation is unconstitutional.
Guo Ping, rotating chairman at Huawei, said in a press release on Friday that cyber security and user privacy protection are at the absolute top of the company’s agenda. “The easiest way to bring down a fortress is to attack it from within. And the easiest way to reinforce it is from outside.”