China's Huawei posts 25% rise in 2018 profit on smartphone sales

Shenzhen-based Huawei raked in a net profit of 59.3 billion yuan ($8.8 billion), compared to a 28% rise in 2017 and a big rebound from a 0.4% increase in 2016.

FILE: The Huawei logo stands on a Huawei office building in Dongguan in China’s southern Guangdong province on 18 December 2018. Picture: AFP

SHENZHEN/HONG KONG - China’s Huawei Technologies, the world’s third-largest smartphone maker, reported a 25% jump in 2018 net profit, buoyed by a solid performance in its home market and a booming smartphone business.

Shenzhen-based Huawei raked in a net profit of 59.3 billion yuan ($8.8 billion), compared to a 28% rise in 2017 and a big rebound from a 0.4% increase in 2016.

The outlook for Huawei is clouded by US accusations that its telecoms network equipment could be used for spying by the Chinese government and calls to allies from Washington to ban Huawei from building next-generation mobile networks.

Huawei has repeatedly said Beijing has no influence over it.

Huawei’s revenue grew 19.5% 721.2 billion yuan last year, in line with what it had earlier flagged.

That marked the fastest pace of business growth in two years for Huawei, despite heightened scrutiny of its activities.

A senior company executive said earlier this week that the US campaign against Huawei was having little impact on the company’s sales and that it was unlikely many countries would heed the US call to ban its gear.

The company expects revenue to jump to $125 billion in 2019.