Huawei's third-quarter revenue jumps 27% as smartphone sales surge

Huawei’s third-quarter revenue jumped 27%, driven by a surge in shipments of smartphones launched before a trade blacklisting by the United States expected to hammer its business.

The company has shipped more than 185 million smartphones in the first three quarters of 2019, up 26 percent year on year, acccording to its financial reports released Wednesday.

The tech giant did not break down third-quarter figures but said revenue for the first three quarters of the year grew 24.4% to 610.8 billion yuan.

That means revenue in the quarter ended September 30 rose to 165.29 billion yuan ($23.28 billion) based on previous statements from Huawei.

“Huawei’s overseas shipments bounced back quickly in the third quarter although they are yet to return to pre-US ban levels,” said Nicole Peng, vice president for mobility at consultancy Canalys.

“The Q3 result is truly impressive given the tremendous pressure the company is facing. But it is worth noting that strong shipments were driven by devices launched pre-US ban, and the long-term outlook is still dim,” she added.

Here is the full texts of its financial resultes translated into English:

Huawei today announced its operating results for the third quarter of 2019. As of the third quarter of 2019, the company achieved sales revenue of RMB 610.8 billion, a year-on-year increase of 24.4%; net profit margin of 8.7%. [1]

Huawei focused on ICT infrastructure and intelligent terminals to continuously improve the company's operational efficiency and operational quality. In the first three quarters of 2019, the business operations were stable and the organization was stable, achieving stable operations.

In terms of carrier business, with the acceleration of global 5G commercial scale deployment, Huawei and many leading operators have released innovative solutions such as 5G “super uplink” and smart bearer network, and established 5G deterministic network industry alliances and industries with many industry partners. Innovative bases, etc., enable operators to innovate and grow. Up to now, Huawei has signed more than 60 5G commercial contracts with the world's leading operators, and more than 400,000 5G Massive MIMO AAUs are sent to all parts of the world. Production and supply of optical transmission, data communication, and IT have grown steadily.

The enterprise business officially released the “Volunteous Digital Platform” for the overall enterprise market. With the characteristics of accumulation, integration, openness and high efficiency, we will build a digital world base together with customers and partners to jointly create a trillion digital industry and accelerate the government and public utilities and finance. The digitization process of industries such as transportation and electric power. As of the third quarter, there are more than 700 cities, 228 of the world's top 500 and 58 of the world's top 100 companies have chosen Huawei as a digital transformation partner.

In the third quarter, Huawei released the overall computing strategy for the first time. It launched the world's fastest AI training cluster Atlas900 and Huawei Cloud Shengteng AI cluster service, 112 new services based on Kunpeng and Shengteng, and industrial agents. Innovative products, such as government, Internet, automobile manufacturing, financial and other industries to achieve major breakthroughs; 3 million enterprise users and developers in Huawei cloud for cloud development.

In the consumer business, the smartphone business maintained steady growth. In the first three quarters, shipments exceeded 185 million units, a year-on-year increase of 26%. New businesses such as PC, tablet, smart wear and smart audio achieved rapid growth. The smart screen released in the third quarter, with innovations in software and hardware, has won unanimous praise from the industry and consumers, and the consumer-centric full-scenario smart ecological layout has been further improved; Huawei Mobile Services (Huawei Mobile Services) HMS) The ecology has developed rapidly and has covered more than 170 countries and regions around the world, with more than 1.07 million registered developers worldwide.