Huawei said Tuesday that its full-year 2019 revenue could rise 18 percent to 850 billion yuan ($121.72 billion), lower than previously expected,media reported. Huawei, the world’s largest maker of telecommunications networks and the world’s second-largest smartphone maker, was banned from trading with almost all U.S. companies in May and blocked access to technologies such as Google’s Android operating system.
Xu Zhijun, Huawei’s rotating CEO, revealed the figures in a New Year’s message to employees and customers, predicting a “tough year” in 2020, saying the company is unlikely to see as fast growth as it did in the first half of the year.
The company expects revenue growth of 18 per cent in 2019, down from 19.5 per cent in 2018. The company has not disclosed its fourth-quarter figures, but Reuters estimates that Huawei’s revenue for the fourth quarter ended December 31, 2019, was 239.3 billion yuan ($23.28 billion), up 3.9 percent from a year earlier, but down 27 percent from the third quarter of this year.
“The external environment is becoming more complex than ever, and the downward pressure from the global economic downturn is getting worse, ” says Mr Xu. In the long run, the U.S. government will continue to suppress the development of leading technologies, which is a challenging environment for Huawei’s survival and development. “
Mr Xu also revealed that Huawei had sold 240m smartphones this year, up 20 per cent from 2018. Most of the phones sold by Huawei were sold before the U.S. ban.
In the letter, Mr Xu said Huawei would “go all out” to develop its own mobile operating system, which would cover services such as cloud storage and the App Store. Mr Xu describes it as “the basis for selling smart devices in markets outside China”.
In the letter, Mr Xu also said Huawei would continue to purge mediocre managers and complacent employees who would step down each year as they stepped down as the worst performing 10 per cent of managers because the company needed to free itself from complacency.