CHINA – Chinese multinational technology company Huawei Technologies Co Ltd has reported a third-quarter revenue jump of 27%.
The impressive revenue according the technology company was driven by a surge in shipments of smartphones launched before a trade blacklisting by the United States expected to hammer its business.
Huawei, the world’s biggest maker of telecom network equipment, was all but banned by the United States in May from doing business with American companies, significantly disrupting its ability to source key parts.
The company has been granted a reprieve until November, meaning it will lose access to some technology next month.
Huawei which is currently the world’s No. 2 manufacturer of smartphones, has so far mainly sold smartphones that were launched before the ban.
Its newest Mate 30 smartphone – which lacks access to a licensed version of Google’s Android operating system – started sales last month.
Huawei in August said the curbs would hurt less than initially feared but could still push its smartphone unit’s revenue lower by about $10 billion this year.
“Our continued strong performance in Q3 shows our customers’ trust in Huawei, our technology and services, despite the actions and unfounded allegations against us by some national governments,” said Huawei spokesman Joe Kelly.
The tech giant did not break down third-quarter figures but said in October that revenue for the first three quarters of the year grew 24.4% to US$86.25 billion (610.8 billion yuan).
Revenue in the quarter ended September 30 rose to US$23.28 billion (165.29 billion yuan) according to Reuters calculations 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 U.S. government alleges that Huawei is a national security risk as its equipment could be used by Beijing to spy.
The tech giant in its defence has repeatedly denied that its products pose a security threat and has moved to establish its own infrastructure to reduce reliance on U.S. components.
In August, the tech giant announced that it had started building 5 base stations in China without U.S components and was also developing its own mobile operating system as the US restrictions cut its access to Google’s Android operating system
It has also conducted widespread promotions in its home market China and through patriotic purchases, the company has been able to maintain a steady rise in phone sales.