Huawei shrugs off US row, revenue tops USD 100 billion
Net profit for 2018 is up by a quarter, driven by strong growth in enterprise, consumer divisions
Huawei sales revenue for 2018 was up 19.5% year-on-year, reaching USD 106 billion; its net profit reached USD 8.7 billion, up 25.1% year-on-year.
At the release of its 2018 annual financial report, Guo Ping, Huawei's Rotating Chairman, said Huawei is committed to building the world's best network connections through heavy investment in 5G technology, alongside large-scale commercial deployment.
“Throughout this process, Huawei will continue to strictly comply with all relevant standards to build secure, trustworthy, and high-quality products. As we work towards this goal, we have been explicitly clear: Cybersecurity and user privacy protection are at the absolute top of our agenda. We are confident that the companies that choose to work with Huawei will be the most competitive in the 5G era. And countries that choose to work with Huawei will gain an advantage for the next wave of growth in the digital economy."
Guo added, "The easiest way to bring down a fortress is to attack it from within. And the easiest way to reinforce it is from outside. Moving forward, we will do everything we can to shake off outside distractions, improve management, and make progress towards our strategic goals. We will continue to strengthen operational compliance, ensure business continuity and sustainability, and cultivate an open ecosystem where all players collaborate and prosper together. In addition, we will continue our organisational transformation to inspire greater passion and vitality across the organisation."
In 2018, Huawei invested USD 14.9 billion (14.1% of its sales revenue) in R&D, ranking fifth globally in The 2018 EU Industrial R&D Investment Scoreboard. Over the last ten years, Huawei's R&D expenditure has reached more than USD 70.5 billion. According to official data released by the World Intellectual Property Organisation (WIPO), Huawei filed 5,405 patent applications to this organisation in 2018, ranking first among all companies globally.
In its carrier business, Huawei launched its latest 5G and SoftCOM AI solutions, focusing on making them as simple as possible to use and maintain. 2018 also saw ongoing development in home broadband and the Internet of Things (IoT). In 2018, the sales revenue of Huawei's carrier business reached USD 43.2 billion, roughly the same as the year prior.
In its enterprise business, Huawei continued providing cloud, big data, artificial intelligence (AI), and IoT solutions, as well as a range of products for data centres, all-flash storage, and Wi-Fi. By integrating these technologies into its digital platform, Huawei has facilitated the construction of smart cities, safe cities, and smart campuses, and has helped drive the digitisation efforts of its customers in the finance, transportation, and energy sectors. In 2018, the sales revenue of Huawei's enterprise business reached USD 10.9 billion, up 23.8% year-on-year.
In its cloud business, Huawei launched 160 cloud services and 140 solutions, and worked with its partners to serve customers worldwide with 40 availability zones across 23 regions. Huawei has grown its list of partners to more than 6,000 in this domain, and is currently exploring the use of its AI services in more than 200 projects across 10 major industries.
In its consumer business, Huawei further increased its share of the global smartphone market and has further enhanced the positioning of its devices. In 2018, the sales revenue of Huawei's consumer business reached USD 51.3 billion, up 45.1% year-on-year.