Huawei saw sales grow 13.1% year over year in the first half of 2020, even though countries around the world continued to weigh on device and smartphone sales bans in the wake of the pandemic, the telecommunications giant said in a letter on Monday.
The company's sales reached 454 billion yuan ($ 64.88 billion) in the reporting period, with carrier, enterprise and consumer companies accounting for 35%, 8% and 56% of total sales, respectively. It ended with a 9.2% net profit margin, up slightly from 8.7% in the same period last year.
The privately held company did not report what contributed to its growth in the first half of the year, but said in the press release that given the COVID 19 pandemic, "information and communication technologies" – the focus of its business – is not just a key tool have been used to fight the virus, but also as an engine for economic recovery. "
The growth came as part of the ongoing U.S. campaign to call on allies to remove Huawei from its network infrastructure. The UK is reported to be phasing out Huawei equipment on its 5G network this year. A plan that critics warn of could lead to network outages and other security risks.
Although Huawei doesn't break down its regional sales, China is expected to be the foundation of growth if it stumbles overseas. The company and its local competitor ZTE, which is also on the black list of US retailers, share the majority of 5G base station contracts from China's main airlines. The network operators have also agreed to purchase 5G phones from Huawei, which would of course give the company a boost in sales.