Huawei posts record profits despite turbulent 2020

The company's enterprise business managed to achieve 23% year-on-year growth

Huawei said it achieved a record profit in 2020 despite being blacklisted in the US and barred from the UK’s 5G infrastructure.

This success can be partly attributed to Huawei’s enterprise segment, which despite providing relatively small revenue in comparison to the tech giant’s two other business groups, managed to achieve a 23% year-on-year growth with full-year revenues of £11 billion.

By comparison, Huawei’s consumer business segment grew by only 3.3%, while its carrier segment experienced minuscule growth of 0.2%. 

Nevertheless, the company didn’t manage to completely brush off the difficulties of the past 12 months. Huawei’s total year-on-year growth was half of what it had generated for the year prior, plunging from 5.6% for 2019 to 3.2% for 2020, at £7.19 billion. 

The tech giant’s growth was largely driven by its home market, with a 15.4% rise in revenue in China. Elsewhere, the business declined considerably, with revenues down by 12.2% in Europe, the Middle East and Africa. Huawei suffered the most severe drop of 24.5% in the US, likely as a result of the trade restrictions imposed by former president Donald Trump.

Huawei's rotating chairman Ken Hu said that “over the past year”, the company had “held strong in the face of adversity”.

Related Resource

Go further with mobile marketing

Easy steps to get your mobile strategy up-to-speed

Easy steps to get your mobile strategy up-to-speed - whitepaper from OracleDownload now

“We've kept innovating to create value for our customers, to help fight the pandemic, and to support both economic recovery and social progress around the world. We also took this opportunity to further enhance our operations, leading to a performance that was largely in line with forecast,” he added.

According to Huawei VP Victor Zhang, one of the key reasons for Huawei maintaining “growth and profitability is that many countries trust us as a partner to deliver next-generation connectivity for their citizens – connectivity that delivers crucial economic and social benefits”.

“After 20 years in the UK we remain committed to our vision of a fully connected and intelligent world for every home, person and organisation,” he added.

Featured Resources

The definitive guide to warehouse efficiency

Get your free guide to creating efficiencies in the warehouse

Free download

The total economic impact™ of Datto

Cost savings and business benefits of using Datto Integrated Solutions

Download now

Three-step guide to modern customer experience

Support the critical role CX plays in your business

Free download

Ransomware report

The global state of the channel

Download now

Recommended

Huawei's smartphone business to decline £30 billion by year end
Business operations

Huawei's smartphone business to decline £30 billion by year end

24 Sep 2021
Podcast transcript: Are foldable phones more than a fad?
Mobile

Podcast transcript: Are foldable phones more than a fad?

17 Sep 2021
The IT Pro Podcast: Are foldable phones more than a fad?
Mobile

The IT Pro Podcast: Are foldable phones more than a fad?

17 Sep 2021
Huawei P40 Pro Plus review: Possibly the world’s best smartphone...with a catch
Mobile Phones

Huawei P40 Pro Plus review: Possibly the world’s best smartphone...with a catch

4 Aug 2021

Most Popular

How to find RAM speed, size and type
Laptops

How to find RAM speed, size and type

17 Sep 2021
What are the pros and cons of AI?
machine learning

What are the pros and cons of AI?

8 Sep 2021
Best MDM solutions 2020
mobile device management (MDM)

Best MDM solutions 2020

17 Sep 2021