Huawei, the well-known Chinese telecom vendor has released a press release to inform about the Q1 2020 Business Results. Amid the coronavirus pandemic in China, Huawei managed a revenue growth. The press release has stated some legitimate data to support their claim. The press release also addresses the endeavors of Huawei that affected the revenue for the first quarter of 2020.
Earlier Huawei also released the Annual Report for the year 2019 where it showed 19.1% growth YoY. The report showed that the growth say was mainly due to 5G telecom equipment and 5G smartphones. Despite having their good standing for 5G contracts, their revenue slowed down massively, coronavirus, or US restrictions to blame!!
Q1 2020 Business Result
On 21st April 2020, Huawei’s press release announces growth in its revenue in the first quarter of the year despite the crisis due to coronavirus pandemic. Huawei claims to have managed to generate a whopping CNY 182.2 billion ($27 billion), which marks an increase of 1.4% year-on-year. They garnered a net profit margin of 7.3%. That’s a dramatic drop from last year’s growth.
Proactive measures for safety
In the press release, Huawei stated that the company and its employees have been working together in tough times. As they resumed operation and production soon, Huawei ensured the proper safety of the employees by taking proactive measures.
Partnership and launching of 5G and AI medical applications
Despite the challenges caused by the coronavirus outbreak, Huawei focused on meeting the network demands of the people that upswinged following social distancing. People relied more on telecommunication facilities for daily activities.
Huawei affirms via a statement that with the collaborative venture with its partners and expertise in communication technologies, Huawei launched numerous 5G and AI- medical applications. AI-assisted CT scan helps doctors fastened diagnostic efficiency, 5G- enabled remote video consultation helps in the treatment of patients, AI-powered thermal imaging devices help in infection prevention.
Huawei stated that it has joined hands with some ASEAN countries and in the Asia Pacific region to deal with on-ground communication challenges regarding innovative technologies during the outbreak period. The Thailand government has shown curiosity towards these medical applications and plans to utilize this service across the country for better medical performance and safety purposes.
Despite the slowdown at Huawei, their business managed the revenue growth that can be perceived as the situational advantage given that the coronavirus pandemic has now majorly affected the US. But there is no clear separation on which the business entity (Core Telecom business, Consumer business, enterprise) went down among the whole business group.
The distraction in the US might have played a role in Huawei’s report as they could not add more restrictions. As the relation between the US and China worsens day by day, we have to wait and watch till the US buckle up and resume.
Huawei overcame the difficulties and made ends meet in the first quarter of the year 2020. The company is highly motivated and hopes to keep up the track. The press release ended with a heartwarming note by Eric Xu, Huawei Rotating Chairman “A seed that survives the storm will sprout and then blossom. Even though it is impossible to know when the tides of this pandemic will turn, we at Huawei believe that this challenge will be overcome by standing together.”
Huawei had created an ecosystem of its own to strengthen its Huawei Mobile Service globally. For which, they developed hardware parts and software on its own to tackle the restrictions imposed by the US government on them.