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Huawei sees first-half earnings surge on smartphone renaissance
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Huawei sees first-half earnings surge on smartphone renaissance
Aug 29, 2024 1:54 AM

SHENZHEN, China, Aug 29 (Reuters) - Chinese tech giant

Huawei reported hefty jumps in first-half revenue and

net profit on Thursday, with smartphone sales robust and its

smart car components business also doing well despite U.S.

sanctions.

Net profit for January to June climbed 18% to 54.9 billion

yuan ($7.7 billion) on a 34.3% rise in revenue to 417.5 billion

yuan. It was the company's highest revenue for a first half

since the same period in 2020.

Huawei did not give an earnings breakdown for individual

units, but a spokesperson said its mainstay consumer business,

which includes smartphones and PCs, as well as its smart car

components unit, performed strongly.

Data from research firm Canalys shows Huawei shipped 22.2

million smartphones in mainland China during the first half, a

55% increase from a year earlier.

Huawei jumped back into the 5G premium smartphone market

last year with its Mate 60 series and this year with its

high-end P series phones - though most of these sales remain

confined to its home market.

The launches have been celebrated in China as a triumph over

U.S. sanctions that have, since 2019, prevented the company from

accessing advanced U.S. chips and other technology.

Washington sees Huawei as a national security risk - a

charge that the company denies. U.S. sanctions have since

broadened out to encompass export bans on highly advanced U.S.

chips to all Chinese firms with Washington seeking to impede

advances in technology for China's military.

Over the last four years, Huawei has also seen remarkable

growth for its Intelligent Automotive Solution unit, which wants

to become the dominant supplier of software and components for

smart electric vehicles and has clinched deals with many

automakers.

Huawei's information and communications tech

infrastructure, cloud, and digital power divisions put in a

steady performance, the spokesperson said, adding that

first-half profits were not boosted by the sale of businesses or

assets as they were in the same period last year.

($1 = 7.1165 Chinese yuan)

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