Huawei reports strong Q1 performance

World
Europe

01:00

China's telecom giant Huawei on Monday announced strong results for the first quarter of 2019, with 179.7 billion yuan (26.80 billion U.S. dollars) in revenue, an increase of 39 percent year-on-year.

The company's net profit margin in Q1 was about eight percent, slightly higher than the same period last year.

Huawei said the solid performance is part of the result of its focus on ICT infrastructure and smart devices.

In the first three months, Huawei shipped 59 million smartphones, other sectors like PCs and wearables also enjoyed a good performance, said the company.

Last month, the tech giant posted a net profit rise in 2018 of 25.1 percent year on year, boosted by strong sales of smartphones worldwide.

In the second and third quarters of 2018, the company surpassed Apple to become the world's second-largest smartphone vendor.

Huawei products are seen in a shop in Bangkok, Thailand, January 30, 2019. /VCG Photo

Deployment of 5G globally

This year, Huawei eyes large-scale deployment of 5G around the world. In January, the company launched the world's first core chip specifically designed for 5G base stations, named Huawei Tiangang.

By the end of last month, the company has signed 40 5G commercial contracts with leading global carriers, and shipped more than 70,000 5G base stations to markets around the world.

The company is expected to take 5G three years (2019-2022) to hit the milestone of 500 million users around the world, said Ken Hu, deputy chairman of the company in a speech days ago. Hu predicted that the number of worldwide 5G users will hit 2.8 billion by 2025.