Despite not being able to access your supply chain in the US. Since May, Huawei has still managed to eliminate competition in its home country. For the second quarter of this year, the manufacturer has sent 37.3 million phones nationwide, with a remarkable annual profit, regardless of the cut, of 31%. The next name on the list, Oppo, delivered less than half of the number of phones made by Huawei in the quarter.
Now, to be honest, the quarter was halfway when the Trump administration, because of security reasons, put Huawei on the entity list. And the company has monopolized some parts and components ahead of a ban. The real problems will begin to arise in the second half of the year when the new models cannot be preloaded with the Android version of Google Play services. All this, frankly, is a complete mess. Huawei claims that the Hongmeng operating system is for industrial use and is not a replacement for Android and US companies have no idea what they can or cannot send to the manufacturer. Any phone in development before May 16, when Huawei was added to the entity list, can use the Android version of Google Play services. This includes the Mate 20 X 5G and the foldable Mate X.
“Our consumer business was growing rapidly before May 16, and since that day there has been some slowdown. And objectively speaking, we will face some challenges in the coming half…Our strategy with the global smartphone business remains unchanged. We will continue to serve our smartphones to global consumers. And we will continue to invest heavily in R&D.” – Liang Hua, chairman, Huawei
Huawei Says The Alternative OS Is Ready If Android Can’t Be Used On The Mate 30 Line
In this context of confusion and uncertainty, Huawei announced this morning that first-half revenues increased by 23.2% to 401.3 billion yuan ($58.7 billion). With a net profit margin of 8.7%, the manufacturer’s final result was around 35 billion yuan ($5.1 billion). During the first half of the year, Huawei sent 118 million phones worldwide, a 24% increase over the amount sent in the first half of 2018. Last year, the company delivered 206 million units worldwide, good enough for third place behind Samsung and Apple.
During the first quarter of this year, the company sent 59 million phones, an increase of 50.3% over the same three-month period last year. This has allowed Huawei to beat Apple and move up to second place worldwide. According to these numbers, Huawei has sent another 59 million phones in the second quarter. The company generally reports a much stronger Q2, indicating that the ban is having a negative impact.
Huawei was to become the largest smartphone manufacturer in the world for the fourth quarter of this year. But the company admitted last month that this will not happen, at least not in 2019. The company still has high hopes for the Huawei Mate 30 line and Liang says he is sure a resolution will be reached. Otherwise, he points out that the company will continue to fight for the survival of its consumer division. And if Android cannot be used in the Mate 30 series, the president of Huawei states that “…. if the U.S. doesn’t allow us, then we will turn to alternatives. As for how ready our OS is, you’ll just have to see with your own eyes.”
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