Huawei reaches record $122 billion revenue despite US government sanctions, warns of tough...

[midian182]

Recap: It’s been a strange year for Huawei. In May, the Chinese giant was added to an Entity List that effectively banned US organizations from doing business with it, yet the company still managed to reach a record $122 billion in revenue during 2019. But the firm has warned that 2020 will be a lot more challenging as it goes into “survival mode.”

In a New Year’s message to employees, rotating chairman Eric Xu wrote that revenue exceeded 850 billion Chinese Yun ($122 billion) this year, which marks an 18 percent YoY increase. While this is a record high for the company, sales figures were still lower than initially forecast. The 240 million handsets it sold in 2019 was up from 206 million last year.

“These figures are lower than our initial projections, yet business remains solid and we stand strong in the face of adversity,” wrote Xu, who added that success came despite" concerted efforts to keep us down" by the US government.

Despite having a good year, Xu believes that if the US government continues “to suppress the development of leading technology,” it will result in a “challenging environment for Huawei to survive and thrive.”

"Survival will be our first priority," said Xu. He added that the company would focus on sustaining growth, boosting its capabilities, "optimizing" its organization, and controlling risks.

While the US has asked its allies not to use Huawei’s 5G equipment in their networks, not every country has agreed to this request. India is allowing Huawei to participate in trials of its 5G spectrum, while UK security chiefs have reportedly told Prime Minister Boris Johnson to allow Huawei to provide Britain's 5G networks.

Last week, Huawei denied a report that it had been given an advantage over its competitors by receiving up to $75 billion in Chinese government aid.

Permalink to story.

https://www.techspot.com/news/83367-huawei-reaches-record-122-billion-revenue-despite-government.html

 

[QuantumPhysics]

"US Sanctions"

I am thankful that I had a chance to attend Fu Dan University and take Mandarin and Business classes there.

One thing I realized immediately and America probably already knows is that China is risen and can't be stopped.

The more I travel through South East Asia, the more I see China's economic influence there - even in Africa as well. Smartphones are a tremendous piece of technology and Hua Wei has a stranglehold of the market in ways that Samsung and Apple can't even challenge due to the fact that they make low-end handsets and premium handsets as well -while large portions of Asia, Africa and South America can't afford more expensive devices.

US sanctions don't work on China.

I just hope Cuba, Venezuela, Bolivia, Iran and Haiti can take part in Hua Wei's 5G revolution.

I want to see the quality of life of those people improved in spite of "Us Sanctions"

This isn't about "cellphones" and "tablets".

This is about the future of global economics.

 

[lipe123]

"US Sanctions"

I am thankful that I had a chance to attend Fu Dan University and take Mandarin and Business classes there.

One thing I realized immediately and America probably already knows is that China is risen and can't be stopped.

The more I travel through South East Asia, the more I see China's economic influence there - even in Africa as well. Smartphones are a tremendous piece of technology and Hua Wei has a stranglehold of the market in ways that Samsung and Apple can't even challenge due to the fact that they make low-end handsets and premium handsets as well -while large portions of Asia, Africa and South America can't afford more expensive devices.

US sanctions don't work on China.

I just hope Cuba, Venezuela, Bolivia, Iran and Haiti can take part in Hua Wei's 5G revolution.

I want to see the quality of life of those people improved in spite of "Us Sanctions"

This isn't about "cellphones" and "tablets".

This is about the future of global economics.

Well said, it's insane how the donald trumps of the world doesn't seem to understand the concept of Global economics. All they see is Us vs "them" and the "them"'s are always eeeeviiillll for some reason.

 

[QuantumPhysics]

Well said, it's insane how the donald trumps of the world doesn't seem to understand the concept of Global economics. All they see is Us vs "them" and the "them"'s are always eeeeviiillll for some reason.

And I doubt "they" understand numbers.

350,000,000 Americans.

1.3 Billion Chinese
1.4 Billion Indians
Around 4 Billion Asians/SE Asians total.
Around 1.2 Billion Africans
Around 0.5 Billion South Americans.

China has more Teenagers than America has people. Same goes for India.

 

[motoDrizzt]

What the heck is a rotating chairman? Some kind of Dragonball technique? Is the guy a Super Sayan? O_o

 

[Uncle Al]

Last week, Huawei denied a report that it had been given an advantage over its competitors by receiving up to $75 billion in Chinese government aid.

So which part is the denial, having an advantage or having received the money?

 

[psycros]

"Despite having a good year, Xu believes that if the US government continues “to suppress the development of leading technology.."

Huawei develops nothing except better means of stealing other people's work.

 

[toooooot]

"Despite having a good year, Xu believes that if the US government continues “to suppress the development of leading technology.."

Huawei develops nothing except better means of stealing other people's work.

But how well they do is almost art

 

[seeprime]

"Despite having a good year, Xu believes that if the US government continues “to suppress the development of leading technology.."

Huawei develops nothing except better means of stealing other people's work.

It's always easier to produce great products when your startling point uses other companies R&D.

 

[Adi6293]

Well said, it's insane how the donald trumps of the world doesn't seem to understand the concept of Global economics. All they see is Us vs "them" and the "them"'s are always eeeeviiillll for some reason.

Well when it comes to China he is 100% right, they do cheat and steal from others....

 

[JaredTheDragon]

But how well they do is almost art

Just imagine though, if you will, that Android or iOS are anywhere near to being an actual piece of art.

SLOPerating systems at best. They are both absolute garbage. Nothing make sense, nothing flows, nothing is unified across devices, and nothing works. You can't simply FIND the settings you need on either device - you have to Google them extensively, and often on ANOTHER device like an actual computer, to fix the most mundane issues and security flaws.

You can't even turn off Facebook Messenger calls on either device. Let's just call these things what they are, already.

 

[Puiu]

People don't seem to understand that most of the world's innovations happen in China now (be it by them or western companies operating there). It's doing exactly what the US has done up until now: taking talent from other countries (but much better and at a faster rate).

People really need to visit China of today and stop imagining that they are still the poor rice field farmers of yesterday. You'll be surprised by what you can find there.

 

[Shadowboxer]

People don't seem to understand that most of the world's innovations happen in China now (be it by them or western companies operating there). It's doing exactly what the US has done up until now: taking talent from other countries (but much better and at a faster rate).

People really need to visit China of today and stop imagining that they are still the poor rice field farmers of yesterday. You'll be surprised by what you can find there.

I frequently visit China for work and I think the biggest surprise people will find is how bad it is to live there. People work in monotonous factories and get paid a pittance to do so (the suicide nets are real). Everything is state controlled and the atmosphere is constricting, there are rules and regulations everywhere to the point of overkill. There is a depressing mood in the air and a culture that has no problem with the rich treating poor workers as inferiors, it’s fine to throw food at a waitress if you aren’t happy with it - no one around will bar an eyelid. The next thing that would shock you is how many western branded products you can get cheap imitations of. Even knock off Rolls Royce!

The picture you paint of China is laughable. I suggest you visit yourself. It’s a horrible place to live. Not to mention all the things you don’t see when you visit, including concentration camps.

 

[Nobina]

I frequently visit China for work and I think the biggest surprise people will find is how bad it is to live there. People work in monotonous factories and get paid a pittance to do so (the suicide nets are real). Everything is state controlled and the atmosphere is constricting, there are rules and regulations everywhere to the point of overkill. There is a depressing mood in the air and a culture that has no problem with the rich treating poor workers as inferiors, it’s fine to throw food at a waitress if you aren’t happy with it - no one around will bar an eyelid. The next thing that would shock you is how many western branded products you can get cheap imitations of. Even knock off Rolls Royce!

The picture you paint of China is laughable. I suggest you visit yourself. It’s a horrible place to live. Not to mention all the things you don’t see when you visit, including concentration camps.

Never been there but that's pretty much how I imagined it, saw some Chinese car trade show and it was a bunch of car brands I've never heard of with cars that are blatant rip-offs of popular cars here. It's a sad state of affairs. On the other hand, the west got too relaxed, but that's a huge (off)topic.

 

[Puiu]

I frequently visit China for work and I think the biggest surprise people will find is how bad it is to live there. People work in monotonous factories and get paid a pittance to do so (the suicide nets are real). Everything is state controlled and the atmosphere is constricting, there are rules and regulations everywhere to the point of overkill. There is a depressing mood in the air and a culture that has no problem with the rich treating poor workers as inferiors, it’s fine to throw food at a waitress if you aren’t happy with it - no one around will bar an eyelid. The next thing that would shock you is how many western branded products you can get cheap imitations of. Even knock off Rolls Royce!

The picture you paint of China is laughable. I suggest you visit yourself. It’s a horrible place to live. Not to mention all the things you don’t see when you visit, including concentration camps.

Please don't bring up suicide nets, China is barely in top 100. The US and Japan on the other hand... those countries desperately need those suicide nets. And do you honestly believe that a factory in the US or any other god forsaken country is less monotonous?

I never said it's a good place to live, but for crying out loud, it's not the shithole you make it out to be. You can make a decent living there if you so desire, much better than some European countries or Russia which has a much lower average wage. Their average wage doubled in the past decade even with inflation taken into account.

The culture there is indeed one that is very hard to accept and adapt to which makes it a very hard place to move to. Just like how I don't generally recommend ppl to move to my native country Romania if they have trouble dealing with people and bad personalities. But I make a decent living here working as a programmer and I'm enjoying life knowing who to get close to and be friends with.

 

[treetops]

Please don't bring up suicide nets, China is barely in top 100. The US and Japan on the other hand... those countries desperately need those suicide nets. And do you honestly believe that a factory in the US or any other god forsaken country is less monotonous?

I never said it's a good place to live, but for crying out loud, it's not the shithole you make it out to be. You can make a decent living there if you so desire, much better than some European countries or Russia which has a much lower average wage. Their average wage doubled in the past decade even with inflation taken into account.

The culture there is indeed one that is very hard to accept and adapt to which makes it a very hard place to move to. Just like how I don't generally recommend ppl to move to my native country Romania if they have trouble dealing with people and bad personalities. But I make a decent living here working as a programmer and I'm enjoying life knowing who to get close to and be friends with.

I don't think people view China as a rice farmer country, they just seem to lack or implement labor laws. Foxconn 36 hour shifts. Beatings. Forced to live within the factory camp. Having your roomates changed every week so you don't get to know\trust them and yes Suicide Nets. That's a disheartening life.

If the Chinese Government would protect it's people....

 

[Puiu]

I don't think people view China as a rice farmer country, they just seem to lack or implement labor laws. Foxconn 36 hour shifts. Beatings. Forced to live within the factory camp. Having your roomates changed every week so you don't get to know\trust them and yes Suicide Nets. That's a disheartening life.

If the Chinese Government would protect it's people....

Yes, labor laws are indeed something they absolutely need to improve. Although I think it's not the laws themselves, but not actually enforcing them.

They're still 10 years behind normal western countries. They require not only an increase in living standards, but also a mindset change of the people which is really hard to achieve. The government can't turn a blind eye forever if it leads to internal unrest.

 

[netman]

This should quiet down some of the skeptical commentators on this site...!

 

[Shadowboxer]

Please don't bring up suicide nets, China is barely in top 100. The US and Japan on the other hand... those countries desperately need those suicide nets. And do you honestly believe that a factory in the US or any other god forsaken country is less monotonous?

I never said it's a good place to live, but for crying out loud, it's not the shithole you make it out to be. You can make a decent living there if you so desire, much better than some European countries or Russia which has a much lower average wage. Their average wage doubled in the past decade even with inflation taken into account.

The culture there is indeed one that is very hard to accept and adapt to which makes it a very hard place to move to. Just like how I don't generally recommend ppl to move to my native country Romania if they have trouble dealing with people and bad personalities. But I make a decent living here working as a programmer and I'm enjoying life knowing who to get close to and be friends with.

All I’m saying is that China is a far worse country to live in than any western country. It’s a hugely depressing place, I would recommend people not to visit imo. Although working in China has its benefits, incredibly cheap flights to Bangkok for example.

 

[Edito]

"US Sanctions"

I am thankful that I had a chance to attend Fu Dan University and take Mandarin and Business classes there.

One thing I realized immediately and America probably already knows is that China is risen and can't be stopped.

The more I travel through South East Asia, the more I see China's economic influence there - even in Africa as well. Smartphones are a tremendous piece of technology and Hua Wei has a stranglehold of the market in ways that Samsung and Apple can't even challenge due to the fact that they make low-end handsets and premium handsets as well -while large portions of Asia, Africa and South America can't afford more expensive devices.

US sanctions don't work on China.

I just hope Cuba, Venezuela, Bolivia, Iran and Haiti can take part in Hua Wei's 5G revolution.

I want to see the quality of life of those people improved in spite of "Us Sanctions"

This isn't about "cellphones" and "tablets".

This is about the future of global economics.

Very well said... your comment brings things down to realness... It's not about phones and tables as you well said it's about the future of global economics...

I'm from Africa and I had the opportunity to study oversea and to work for an organization that allows me to travel a lot around the world and You couldn't be more correct...

China is the force to show America how it's done...

 

[Shadowboxer]

Very well said... your comment brings things down to realness... It's not about phones and tables as you well said it's about the future of global economics...

I'm from Africa and I had the opportunity to study oversea and to work for an organization that allows me to travel a lot around the world and You couldn't be more correct...

China is the force to show America how it's done...

Ironically though, America mostly shows China how it’s done and then China makes America’s products for them. America is way ahead of China and the most of the world technologically speaking, China may be able to make their own stuff but it’s mostly reverse engineered from American tech. Look at almost modern phones, in particular the iPhone - designed by Apple in California, made in China (Soon to be India). Google, Apple, MS, Intel, AMD etc - it’s all Yank.

Look at how badly Huawei are suffering outside of China without being able to use American techs. It’s one thing to cheaply piece together a smartphone but at the end of the day the chip designs for these things still originated in the west. And without American software it’s hopeless outside of its own economy and it’s only that way because China usually locks out foreign competition from its domestic markets.

All China really has is a lot of low paid workers who spend those low wages on buying masses of self made devices. They aren’t leading the world. When it comes to design Japan and Korea are still well ahead of China. China do lead in some areas, like 5G for example but the vast majority of their stuff is copied from western (mostly American) tech.

I guess China leads the world in how cheaply it can make devices, usually through exploitation of its own population

 

[Edito]

Ironically though, America mostly shows China how it’s done and then China makes America’s products for them. America is way ahead of China and the most of the world technologically speaking, China may be able to make their own stuff but it’s mostly reverse engineered from American tech. Look at almost modern phones, in particular the iPhone - designed by Apple in California, made in China (Soon to be India). Google, Apple, MS, Intel, AMD etc - it’s all Yank.

Look at how badly Huawei are suffering outside of China without being able to use American techs. It’s one thing to cheaply piece together a smartphone but at the end of the day the chip designs for these things still originated in the west. And without American software it’s hopeless outside of its own economy and it’s only that way because China usually locks out foreign competition from its domestic markets.

All China really has is a lot of low paid workers who spend those low wages on buying masses of self made devices. They aren’t leading the world. When it comes to design Japan and Korea are still well ahead of China. China do lead in some areas, like 5G for example but the vast majority of their stuff is copied from western (mostly American) tech.

I guess China leads the world in how cheaply it can make devices, usually through exploitation of its own population

You are correct to some extent and I'm not saying China don't reverse engineer they do... But if USA was way ahead like you say they would't bother but trust me USA needs China more than China needs USA because they have the know how and resources to do whatever they wanna do while USA will have to make structural changes to the way they work in order to cut the China dependencies that's why they are fighting with China and not other country and trust me it's a fight that they can't win... They are ahead in some areas yes they are but who else can challenge them? China so yeah they can show how it's done.

 

[Shadowboxer]

You are correct to some extent and I'm not saying China don't reverse engineer they do... But if USA was way ahead like you say they would't bother but trust me USA needs China more than China needs USA because they have the know how and resources to do whatever they wanna do while USA will have to make structural changes to the way they work in order to cut the China dependencies that's why they are fighting with China and not other country and trust me it's a fight that they can't win... They are ahead in some areas yes they are but who else can challenge them? China so yeah they can show how it's done.

Oh you’ve got this badly wrong. Anyone can assemble tech but not everyone can design it. Take the iPhone, as soon as Trump started threatening tariffs on China it started moving production to India. Now there is a ban on business with American companies China are frantically trying to create their own silicon and so far have no succeeded.

Most of the money in tech goes to the designers not to the factories that assemble it. And the fact is there isn’t much IP in China, the vast majority of tech assembled cheaply in China is designed outside of China. If a lower bidder came along, China would be finished.