Chinese telecoms equipment maker Huawei Technologies announced that its revenue for the first nine months of the year reached 456.6 billion yuan ($62.4 billion), reflecting a 2.4% increase compared to the same period the previous year.
The company also stated that its net profit margin was 16%, without providing a comparison basis.
Ken Hu, Huawei’s rotating chairman, expressed his gratitude to customers and partners and reaffirmed the company’s commitment to increasing investment in research and development.
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“Moving forward, we will continue to increase our investment in R&D to make the most of our business portfolio and take the competitiveness of our products and services to new heights,” Hu said.
Huawei has faced significant challenges since being placed on a U.S. blacklist by former President Donald Trump, which restricted the company’s ability to do business with U.S. firms. The move cut off Huawei’s access to U.S. processor chips and other technologies. Huawei has consistently denied allegations of being a security risk and maintains that it does not engage in spying for the Chinese government.
To counter the effects of U.S. sanctions, Huawei shifted its focus to helping companies, factories, and mines digitize their operations. The company has continued to invest heavily in research and development, with a significant portion of its revenue allocated to R&D. It has also invested in advanced technologies, including computer chips and autonomous driving.
In September, Huawei garnered attention when it launched its Mate 60 smartphone series in China. The high-end Mate 60 Pro smartphone featured a domestically-made advanced chip, signaling Huawei’s efforts to overcome U.S. sanctions. Chinese consumers responded positively to the Mate 60 phones, leading to a 37% increase in Huawei’s smartphone sales for the third quarter, while other brands experienced declining sales growth.
Huawei recently opened a health lab in Helsinki, Finland, as part of its commitment to advancing research in health monitoring algorithms for wearable technologies.
The recent profit indicates that the telecom giant has significantly defied the U.S. ban, and is on a path to becoming fully self-sufficient.
Kenya Government Partners with Huawei for ICT Infrastructure Development
The government of Kenya has announced a strategic partnership with Huawei, a global leader in information and communication technology (ICT), to accelerate the development and digitization of the country’s ICT infrastructure. The partnership aims to enhance connectivity, improve public services, and create more opportunities for innovation and economic growth.
According to a press release from the Ministry of ICT, Innovation and Youth Affairs, the partnership will focus on four key areas: broadband network expansion, smart city solutions, digital skills training, and e-government services. The partnership will also support the implementation of the Digital Economy Blueprint, which was launched by President Uhuru Kenyatta in 2019.
Huawei has been a long-term partner of Kenya in the ICT sector, having worked with various government agencies and private sector players to deploy cutting-edge technologies such as 4G, 5G, cloud computing, artificial intelligence, and Internet of Things. Huawei has also invested in several corporate social responsibility initiatives, such as the Seeds for the Future program, which provides ICT training and scholarships to young Kenyans.
However, the partnership also faces some challenges and risks that need to be addressed. For instance, some critics have raised concerns about Huawei’s involvement in Kenya’s national security and data privacy, especially in light of the US sanctions and allegations of espionage against the Chinese company.
For instance, some critics have raised concerns about Huawei’s involvement in Kenya’s national security and data privacy, especially in light of the US sanctions and allegations of espionage against the Chinese company. According to the US Department of Justice, Huawei has been accused of racketeering and trade secret theft, as well as evading US rules on doing business with Iran and North Korea. Prosecutors also said Huawei offered bonuses to staff who obtained confidential information from its competitors.
Moreover, the partnership will require substantial investments and coordination from both sides, which may pose financial and operational difficulties in the midst of the COVID-19 pandemic. Therefore, it is important that the partnership is based on mutual trust, transparency, and accountability, and that it adheres to the highest standards of quality and security.
Huawei has denied any wrongdoing and has challenged the US government to provide evidence for its accusations. The company has also stated that it is working on addressing the security concerns across the globe by engaging with regulators and stakeholders. Huawei has claimed that it follows a strict code of business ethics and complies with all applicable laws and regulations in the countries where it operates.
Huawei has also argued that it is a victim of unfair competition and political pressure from the US government. The company has expressed its willingness to cooperate with any independent verification or audit of its products and services.
The partnership between Kenya and Huawei is expected to bring significant benefits to both parties, as well as to the citizens and businesses of Kenya. By leveraging Huawei’s global expertise and experience, Kenya will be able to build a more resilient and inclusive digital economy that can drive social and economic development. Huawei, on the other hand, will be able to expand its market presence and showcase its innovative solutions in one of the most dynamic and promising regions in Africa.