On Monday, Huawei Deputy Chairman Eric Xu announced the firm generated a record $122 billion in revenue this year. As such, the Chinese conglomerate increased its sales by 18 percent from 2018. Moreover, the executive revealed that his firm shipped 240 million handsets in 2019, an increase of 17 percent year-over-year.
However, Xu also stated Huawei likely wouldn’t experience the same level of growth in 2020. Nevertheless, the firm’s recent deal-making and the de-escalation of Sino-American trade tensions suggests it will do well next year.
Huawei’s Triumphant 2019
Despite being caught up in the U.S.-China trade war, the Shenzhen-based Huawei had a banner year in 2019. In May, the Sino firm surpassed Apple to become the world’s second-largest smartphone manufacturer behind Samsung. Its combination of affordably priced elite and mid-tier handsets allowed it to gain significant traction. In addition, the firm utilized a patriotic advertising campaign to become China’s number one mobile device maker.
Furthermore, the firm’s leadership found a way to source components to make its devices despite losing its U.S.-based chip suppliers. As a result, Huawei maintained its status as the globe’s second-biggest handset producer. Also, the Sino conglomerate secured significant contracts to set up fifth-generation data networks in more than 50 regions worldwide.
In fact, Huawei proved so successful this year it rewarded its employees with $286 million in bonuses.
Huawei’s Challenging 2020
In his announcement, Xu outlined two reasons why Huawei likely won’t achieve record growth next year. The executive listed uncertainty around the global economy and it being locked out of the U.S. market. However, the corporation will probably do very well in 2020, even with those challenges.
For one thing, Huawei announced in November that it’d made significant steps in developing a multiplatform operating system called Harmony. The company hopes to soon provide its consumers with a robust and interoperable digital ecosystem for their online-enabled devices.
Besides, the company has taken key steps to expand its footprint into two key emerging markets. In March, the Chinese corporation revealed it partnered with South Korean fashion house Gentle Monster to make a pair of augmented reality glasses. Moreover, last month, Huawei made a deal with Sino cartography firm NavInfo Co. Ltd. to develop a new self-driving solution.
Accordingly, provided those two products reach maturity, the firm will benefit from two new parallel revenue streams.
It’s also worth noting Huawei has taken steps to bolster its core business recently. On December 30, an Indian government official said Mumbai would not exclude the firm from its upcoming 5G trials. Therefore, the Sino conglomerate might secure a contract to deploy fifth-generation data networks throughout the world’s second-largest wireless market.
Besides, Microsoft and Micron have both recently secured trade licenses permitting them to do business with Huawei once again. As the U.S.-China trade war has seemingly ended, the Sino Tech firm might eventually be able to resume partnerships with its other American suppliers.
Though its present position is less than ideal, Huawei has enough contracts and partnerships to ensure it’ll have a lucrative 2020.