April 22, 2019 1:45 pm

Huawei’s Q1 revenue grows 39% despite company controversy

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Chinese tech giant Huawei said Monday its revenue rose 39 per cent over a year earlier in the latest quarter despite U.S. pressure on allies to shun its telecom technology as a security risk.

Huawei, the biggest global maker of network equipment for phone and internet companies, on Monday reported revenue of USD $26.8 billion for the first three months of the year.

READ MORE: With security concerns and criminal charges – should Canada allow Huawei to operate in Canada?

Washington’s pressure on allies to avoid Huawei, China’s first global tech brand, threatens to block access to Europe and other markets as carriers prepare to invest billions of dollars in next-generation technology.

The company denies U.S. accusations it facilitates Chinese spying.

Huawei, founded by a former Chinese military engineer in 1987, is privately held but reports financial results to try to defuse Western security concerns.

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Huawei gave no quarterly earnings but said its profit margin was eight per cent. That would be about $2.1 billion.

The revenue growth reported Monday was higher than the 19.5 per cent gain reported earlier for 2018 annual revenue. The company earlier reported annual sales of $105.2 billion.

Guo Ping, rotating chairman of the company, has said he expects all three business groups – consumer, carrier and enterprise – to post double-digit growth this year.

Huawei also said on Monday it had shipped 59 million smartphones in the first quarter. It did not disclose year-ago comparable figures, but according to market research firm Strategy Analytics, Huawei shipped 39.3 million smartphones in the first quarter of 2018.

WATCH: Pressure mounting to exclude Huawei from 5G in Canada

 — With files from Reuters

© 2019 The Canadian Press

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