Huawei's revenue rises in the first quarter of 2020, despite COVID-19 shutdowns
Despite challenges due to the COVI-19 outbreak which caused factories to shut and cities to close, Chinese conglomerate Huawei generated 182.2 billion Chinese yuan (nearly $25.8 billion) in revenue in the first quarter of 2020, an increase of 1.4 per cent year-on-year, the company announced on Tuesday.
The company also reported net profit margin of 7.3 per cent in Q1 2020, a little down from 8 per cent in the first quarter of 2019.
"It is our hope that the pandemic ends as soon as possible. We also hope that every patient around the world can be treated and cured as quickly as possible. The outbreak of COVID-19 is another reminder that we share this world and share the same fate," said Eric Xu, Huawei Rotating Chairman.
"In order to address common challenges such as this one, we need to be united, because a virus knows no borders and may target anyone, regardless of their race, skin colour, or wealth," he added.
The company and its supplier network are working together to address the tough challenges facing production and resume operations.
Huawei's business is continuing as usual and its overall business results in Q1 2020 are in line with expectations, the company said.
"Huawei is doing everything in its capabilities to help carriers ensure stable and secure network operations. Together, we are working to meet the network demand created by social distancing as people switch to telecommuting, distance education, and e-commerce for daily necessities," said the company.
Since the outbreak, Huawei and its partners have rapidly launched many 5G- and AI-powered medical applications.
"We are using our expertise in communications technologies to help fight the pandemic and save more lives," it added.
Huawei was placed on the US Entity List in May 2019, preventing US companies from doing business with the firm without a special license.
It means that Google is prohibited from working with Huawei on new device models or providing Google's apps including Gmail, Maps, YouTube, the Play Store and others for preload or download on these devices.
According to a Forbes report, nearly 600 million Android users in China and those with a Huawei handset will not have access to the Apple-Google contact tracing technology to curb coronavirus spread.
The absence of Google app ecosystem on Huawei devices – owing to the US-China trade war – has led to its flagships like Mate 30s and P40s losing a big market, said the report.
According to a Huawei spokesperson, an open Android system and ecosystem is still their first choice "but if we were not able to continue to use it, we have the ability to develop our own operating system".
"Protecting the privacy and security of our users is Huawei's top priority. AppGallery is a top platform for Huawei users to access secure and high quality apps.
"We encourage our users to explore apps through App Gallery or other secure channels. Huawei is working with global app developers, through different initiatives, to continuously improve user experience," the company spokesperson elaborated.
*Edited from an IANS report