Huawei, early last week, reported robust revenue for 2019 as the beleaguered Chinese technology company continues to grow in spite of an extended American campaign against its business. However, it warned that growth this year could only prove to be more challenging. Eric Xu, the rotating chairman of Huawei, wrote as the company's New Year's message to employees that the firm's proceeds topped last year's $122 billion, which is a new record high for the company, and an 18%-increase over the past year.
In an article TechCrunch posted on its site, Xu also said that Huawei, the second-largest smartphone manufacturer worldwide, sold approximately 240 million handsets in 2019, up from 206 million in 2018. The figures mentioned are lower than the company's initial forecasts. Yet, business stays solid, and Xu added in his written message, the company would remain strong "in the face of adversity." Moreover, the company official acknowledged, too, that the tech giant is confronting a tactical and long-term crusade against its business by the American government.
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A Difficult 2020 Ahead for Huawei
If the campaign mentioned persists for a while, it could create a more challenging environment for this 32-year-old company to survive and thrive. Because of this, survival becomes Huawei's top priority this year. This was according to Xu. Additionally, the United States added the Chinese firm to the trade blacklist of the Commerce Department this year, and placed new limitations on its ability to sell to, and retain commercial relations with American businesses.
Also, in connection to the issue, the American government urged its allies, as well, to not use products of Huawei in developing the "next generation of their telecom network infrastructure," suspecting that the Chinese-owned firm poses a danger to national security. During the start of the last quarter of 2019, the Wilbur Ross, U.S. Commerce Secretary, said in a conference held in New Delhi, he is hoping India, the second-largest telecom market in the world, does not unintentionally subject itself to any untoward security through the use of 5G Technology from Huawei.
Huawei's 5G Technology
Despite the U.S. government's warning, not all allies have followed its advice. Early last week, the company obtained a major win in India, which approved its request to partake in trials of its 5G Technology. Relatively, Huawei India's CEO, Jay Chen, said in a statement, the company firmly believes that only tech innovations, as well as high-quality networks, will be the key rejuvenating the telecom industry in India.
The struggle from Huawei in the 5G spectrum, by disparity, is both pressing and real. As Margarethe Vestager, incoming European Commission vice-president assumes the added responsibility of making the European country fit for the electronic or digital age, and there is a need for her to consider whether having a single firm controlling the future of EU is healthy or not. More so, Western governments need to aspire to open competitive markets. Nevertheless, in China, they encounter a superpower competition that does "does not share this disbelief."
The open market authoritative appears to conflict with the need for the preservation of both innovation and competition. A dirigisme degree to back western 5G technology is desirable to the substitute: a future wherein Huawei is the only option.
