Cry Uncle Sam! After American sanctions, Huawei’s profits soar by almost 600%

Huawei Technologies Co.’s net profit jumped 564% to 19.65 billion yuan ($2.71 billion) in the first quarter, a regulatory filing from its parent company showed on Tuesday, as it continues to recover from U.S. sanctions. .

Huawei’s revenue in the quarter ending in March rose 37% to 178.5 billion yuan, the document sent to China’s National Interbank Financing Center showed. He did not detail the performance of business units such as consumer components and smart cars.

A Huawei spokesperson said “digitalization, intelligence and decarbonization” helped drive revenue growth.

“The industry and global markets will remain fraught with uncertainty throughout the rest of 2024. However, we are continually building mechanisms for global business continuity and agile operations,” the company said.

“We are confident that we can meet our annual business goals and achieve sustainable growth.”

Last year, Huawei recorded its fastest revenue growth in four years, with a recovery in its consumer segment and revenue from new businesses such as smart car components accelerating its recovery from US sanctions.

The company’s smartphone business has undergone a renaissance since being hampered by repeated rounds of US sanctions since 2019, after Huawei launched a new high-end smartphone equipped with a domestically manufactured chip last year that took away market share Chinese Apple (AAPL .O)

Apple’s share of the world’s largest smartphone market fell to 15.7% in the first quarter, from 19.7% a year earlier. That put it roughly on par with Huawei, which saw sales jump 70%, research firm Counterpoint said last week.

Huawei also started selling its much-awaited high-end Pura 70 series of smartphones this month.

It has also become a force in smart car technology, with its driver assistance system praised by at least seven Chinese automakers at the Beijing auto show.

(US$ 1 = 7,2381 yuans chineses)

Via Reuters.