TROUBLED CHINESE tech giant Huawei has released better than expected results for the first half of 2019, though as you'll soon see, there's a catch.
The company's decision to publish a full half-year has paid off, showing as it does a 23.2 per cent year-on-year increase in revenue - despite all the trouble being caused by the White House trade ban.
Here's the thing though - most companies report by quarters, including Huawei up to now. Keep that in mind.
It reports revenue of $58.26bn (£47.81bn) with a net profit margin of 8.7 per cent. In the report, Huawei's chairman thanks customers for their ongoing ‘trust and support' adding:
"This has been a unique period in Huawei's history. Given the situation, you might think that things have been chaotic for us. But that's far from the case. We have been working hard to ensure smooth operations, and our organization is as sound as ever. With effective management and excellent performance across all financial indicators, our business has remained robust in the first half of 2019."
However, whilst nobody is accusing Huawei of cooking the books, there's no doubt these numbers are a bit subjective. By burying the most recent figures in the safe haven of a wider period, mostly pre-ban, there may well be more effects than the figures suggest.
For example, an analysis from IDC shows that Huawei's growth in the smartphone sector has stalled completely. Between 2013 and 2018, the company has shown consistent growth averaging at 32.5 per cent between Q1 and Q2 of each period. Last year the figure was 38 per cent, with Q2 of 2018 showing a massive 54 per cent growth.
This year, Q1 figures clocked in at 59 per cent. Impressive. However, the Q2 figures are the same - 59 per cent. So although Huawei hasn't dropped in shipments particularly, it also hasn't grown between quarters for the first time since 2012.
Of course, that's only one sector of a very large business, but given that entire countries are refusing to use its 5G networking equipment, it's quite likely that its not the only part of the business to slow down - but by lumping Q1 and Q2 together into H1 results, it buys the company more time before it comes to light. Eeek.
The news comes as it is revealed that Google and Huawei have been collaborating on a smart speaker, which has been shelved, thanks to the ban. μ
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