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Huawei Technologies Co. said that their revenue from the first quarter jumped 39 percent to 179.7 billion yuan ($26.81 billion), as the Chinese telecom giant made further inroads in the market for 5G wireless technology.
Huawei said their revenue totaled 179.7 billion yuan ($26.8 billion) for the first three months of 2019. The company said it shipped 59 million smartphones in the first quarter.
In a statement to Reuters, the company said that 2019 “will be a year of large-scale deployment of 5G around the world” and its carrier business “has unprecedented opportunities for growth.”
Last month, Huawei had signed 40 commercial contracts for 5G network with some of the world leading global carriers.
It is important to know that 5G mobile networks is the next-generation standard for wireless communications and is set to start taking over the mobile network environment in 2019, although they won’t fully replace LTE or its variants immediately. 5G delivers pretty much-increased capacity, lower latency, and faster speeds.
That is important because now the company wants to show that they are still growing and that’s why, for the first time, they had released a quarterly earnings report. The company usually reports financial results for half a year and then the full year.
The U.S. has actually tried to force other allied countries like Germany and the U.K. to block Huawei from 5G, but neither country agreed. Washington has accused Huawei of being a national security risk, warning that its equipment could be used by the Chinese government for espionage purposes. However, the company had denied those accusations.
5G and Smartphones Are Still Strong
Zaker Li from IHS Markit, a global information provider said:
“Although we have seen fast growth for Huawei phones in all major markets, the first-quarter growth is still beyond our expectations. Huawei will overstep Apple in phone shipments this year and get close to market leader Samsung by the end of the year.”
Referring to the U.S. blocking, Huawei’s founder Ren Zhengfei said that the U.S. has actually helped advertising for the company by talking about it so much.
In one of his interviews he said:
“For such a powerful country to be scared of a small company like us, some other countries are saying, ‘Your products are so good that the U.S. government is scared. We won’t test your products. We’ll buy them directly.’ That’s why some deep-pocketed countries with rich oil reserves are buying from us. They are buying our products in large quantities as the U.S. government is advertising for us.”
Guo Ping, Huawei’s chairman said that he expects all three business groups, consumer, carrier and enterprise, to post double-digit growth this year.
Launching ‘World’s First’ 5G Communications Hardware For Cars
Huawei said in a statement that the so-called MH5000 module is based on the Balong 5000 5G chip which it launched in January. They said:
“Based on this chip, Huawei has developed the world’s first 5G car module with high speed and high quality.”
It launched the module at the Shanghai Autoshow, which began last week.
They stated from the company:
“As an important communication product for future intelligent car transportation, this 5G car module will promote the automotive industry to move towards the 5G era.”
Last few years, Huawei has been testing technology for intelligent connected cars in Chinese cities such as Shanghai, Shenzhen and Wuxi and has signed cooperation deals with a swathe of car makers including FAW, Dongfeng and Changan.
Another product launched in the season is Huawei Cloud that released its AI model market when the services debuted in Singapore. Its “one-stop-shop”, AI development platform ModelArts, came first in both image classification training and inference in the Stanford DAWNBench deep learning competition.
The model arts is intended for developers with AI application requirements but no AI development capabilities. They are unfamiliar with AI development frameworks and cannot develop models themselves.