Huawei Technologies Tuesday stated its full-year income would likely leap 18% in 2019 to 850 billion yuan ($121.72 billion), lower than its earlier forecasts, as a U.S. trade blacklisting curbed growth and disturbed its ability to source vital components.
The U.S. banned the world’s greatest manufacturer of telecom network gear and the #2 smartphone maker in May from doing business with U.S. firms, preventing its access to technology like Google’s Android OS.
The U.S. government alleges Huawei gear pose national security threats because the Chinese government could utilize them for espionage. Huawei has repeatedly declined its products are a security threat.
Huawei’s Rotating Chairman Eric Xu announced the numbers in a New Year’s message to employees and clients by which he also anticipated 2020 to be a “difficult year’, saying that the firm was unlikely to grow as quickly as it did in the first half of this year.
Its estimate of 18% income growth in 2019 is less than in 2018 when Huawei’s annual income rose 19.5%.
The corporate didn’t break down fourth-quarter figures; however, calculations based on its earlier statements, income in the quarter to end December 31 surged to 239.2 billion yuan ($23.28 billion), up 3.9% from a year before and slower than the 27% increase it reported in the third quarter.
Xu stated that Huawei delivered 240 million smartphones this year, a 20% climb from last year. Huawei has mainly sold smartphones that had been launched before the ban.
The latest Mate 30 smartphone first went on sale in September, but it can’t access a licensed version of Google’s Android OS due to the trade barriers.