Huawei reported its smallest annual profit increase in three years, hurt by weak overseas sales amid an intensifying U.S. campaign to restrict its global expansion due to security concerns
The world’s largest maker of telecoms equipment issued the warning as it reported its weakest annual profit growth in three years. It said Beijing could hit back against U.S. measures to restrict chip sales to Huawei, by restricting sales of American products in China and by shifting to alternative suppliers in China and South Korea.
The United States alleges the Chinese government could use Huawei’s equipment to spy, an accusation rejected by the company. “Even if this situation you mentioned happened, Huawei and also other Chinese companies can choose to buy chipsets from Samsung from Korea, MTK from Taiwan, and [Unisoc] in China, and use those companies to develop chips,” Huawei’s Xu said.
That was mainly driven by China, where sales surged 36.2% to 506.7 billion yuan. In contrast, revenue from the Asia-Pacific region excluding China fell 13.9%, while in Europe and the Middle East sales grew just 0.7%.
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