Huawei’s first quarter revenue increases 39 per cent as it reveals big jump in global smartphone shipments

Huawei Technologies, the world’s largest telecoms equipment vendor and a top 3 smartphone brand, said it registered strong growth in all business segments in the first three months this year as it recorded a sharp jump in smartphone shipments.

Huawei generated revenue of 179.7 billion yuan (US$26.8 billion), an increase of 39 per cent year-on-year and indicating resilience in the face of US pressure to curtail its participation in the roll out of global 5G network infrastructure.

The company's net profit margin in the first quarter was about 8 per cent, slightly higher than the same period last year, according to a statement from Huawei on Monday in its first quarterly release of business results ever. No revenue figures for specific business segments were announced.

In the first quarter Huawei said it shipped 59 million smartphones. According to IDC research data, that represents growth of 50 per cent from the 39.3 million handsets it shipped during the same period last year.

“Although we have seen fast growth for Huawei phones in all major markets, the first-quarter growth is still beyond our expectations,” Zaker Li, a senior industry analyst with IHS Markit, said on Monday. “Huawei will overstep Apple in phone shipments this year and get close to market leader Samsung by the end of the year.”

Huawei wants to win 50 per cent of the Chinese smartphone market by the end of this year, and is on track to ship 250 million to 260 million smartphones globally this year, which would take it close to the top position, its mobile chief, Richard Yu Chengdong, said during a conference in Shanghai in March.

Earlier this month Huawei said it was expecting growth of at least 10 per cent for its carrier business this year as operators and businesses alike prepare for commercialisation of 5G in 2020, after two consecutive years of flat sales.