China’s Huawei Technologies on a new high with first quarter results

Although its been largely blocked in the United States and Australia, Huawei has reported a surge in shipments to the EMEA region during the first quarter and expects to take the crown of being World No. 1 in sales by the end of 2018.

In a significant, Chinese telecom equipment maker Huawei Technologies Co, raised its full year forecast by more than 200 million saying it could potentially claim the crown of being the world’s top vendor of telecom devices by the end of this year.

In the quarter ended June 30, Huawei displaced Apple as the No. 2 smartphone vendor; it now expects its full-year shipments to beat an initial target of 180 million. In the first quarter, Huawei shipped a whopping 95 million smartphones, said Richard Yu, Huawei’s CFO on Friday.

“I think it’s no problem that we become the global No.2 next year; in Q4 next year, it’s possible we become No.1,” said Yu to a Huawei media briefing at its headquarters.

Much of the growth of the Shenzhen-based company can be attributed to strong sales in Europe and China. Its premium smartphones in the p20 series sold more than 9 million units since its launch four months ago.

For the Chinese company, its performance in the domestic market is vital since there have been security related concerns in Australia, United States and in other nations that the widespread usage of its devices could facilitate spying by the Chinese government – a charge that it has repeatedly denied.

Although major carriers in the United States are not carrying its smartphones, strong growth in other markets has largely offset the closing of doors in the U.S.

Huawei’s consumer business group, which includes its smartphones operations, saw a phenomenal rise of 73% growth in revenues in the Europe, Middle East and Africa (EMEA) region during the first quarter. Revenues from domestic sales grew by 37%.

Although Yu declined to provide half-year revenue figures for Huawei’s consumer business group, he said it made a higher revenue contribution – a trend that he expects will continue.

Incidentally, the company plans on adding 10,000 retail stores around the world by the end of this year.

It also plans on internally testing its 5G phones in the fourth quarter, for their eventual launch sometime next year, said Yu.

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