Many assumed that Huawei would be in huge, huge trouble following the ban from the US in which the company would no longer be allowed to do business with US companies. This was a huge deal when you consider the fact that Huawei sources many components and software from US based companies.
Most notably, many were wondering if this could spell the end of Huawei’s aspirations to become the biggest smartphone vendor in the world. It turns out that the ban actually didn’t do much to Huawei’s business because according to a report from the BBC, it turns out that despite being blacklisted, Huawei actually managed to enjoy a 20% increase in smartphone sales.
The company had reported revenue increase by as much as 23% in the first half of the year (although this missed the mark set by analysts who predicted 30%), while smartphone shipments actually grew by 24%.
According to Liang Hua, Huawei’s chairman, “Given the foundation we laid in the first half of the year, we continue to see growth even after we were added to the entity list. That’s not to say we don’t have difficulties ahead. We do, and they may affect the pace of our growth in the short term.”
Huawei’s troubles are definitely far from over. The company is still technically on the US Entity List, but due to recent events, US companies can now apply for licenses to do business with Huawei.