28% Rise In Profits For Huawei Despite Setbacks In The U.S.

Chinese IT company Huawei is doing good in all of the global markets that it is operating in except the U.S. where it is facing stiff challenges from the government and others.

A profit growth of 28% – totaling $7.3 billion, for 2017 was reported by the Chinese tech company on Friday, in comparison, there was hardly any growth in its profits the year earlier.

The drivers for the enhanced profit growth included smaller foreign currency losses, strong sales in its home market and cost curtailments.  While growth was somewhat slower compared to what it had achieved in recent years, there was double digit growth in its sale of 16%.

The company has had to face multiple blows in the United States in 2017 and the rise in profits came despite those setbacks.

Only Samsung and Apple are head of Huawei as the maker of smartphone in the world. and in the sphere of provider of telecom equipment it has a leading position in Asia, Europe and Latin America.

There are official concerns among many in the United States that Huawei may be used by the Chinese government to gather intelligence with the help of the company’s smartphones and other products and this has made the company struggle in the United States.

Claiming the winning of trust and confidence in 170 other countries where it operates, all of the allegations and fears have bene allayed by Huawei repeatedly.

Claiming the smartphones and devices that are manufactured by Huawei and ZTE – another Chinese company, could present a security threat, the US intelligence agencies has issued warnings for American not to use devices of those companies

There were other setbacks for Huawei also in the United States.

Ordering of Huawei phones had been stopped by Best Buy, the company confirmed last week.

Earlier this year, there was no result in the deliberations between Huawei and the wireless carrier AT&T.

And citing concerns that Huawei would be handed over an advantage in the race to introduce 5G technology, a hostile takeover bid of US chip-maker Qualcomm by its Singapore based rival Broadcom worth $117 billion was squashed by President Donald Trump in march.

For the markets that are outside of the U.S. – such as Asia, Europe and Africa strong sale was reported by Huawei

There was a revenue drop of almost 11% in Latin America because of a fall in telecommunication investment, the company said.

39% of Huawei’s total sales was accounted for by sale of smartphones

“Huawei put a lot of investment in this business,” said Kitty Fok, an analyst at research firm IDC. “But it’s less than 10% [of total revenue], which is disappointing,”

(Adapted from Money.CNN.com)

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