Huawei announced today its financial results for Q2 2019 and S1 2019, revealing that its revenues increased by no less than 23% in the second quarter of this year compared to the same period last year. Huawei's financial results for S1 2019 are impressive, and that's because a good part of T2 2019 was marked by US sanctions, and this was fully felt in phone sales, not so much in receipts.
Huawei announced that it sold 118 million smartphones in S1 2019, up 25% from the same period last year, and that's also impressive, but the company hid a big problem. In Q1 and Q2 2019, the Chinese sold 59 million smartphones each, so sales did not increase from one quarter to another, as happened in each of the previous 5 years, and although the Huawei P30 PRO series was released in March.
Huawei Announces a GREAT SUCCESS and the MAJOR PROBLEM of Sanctions
Huawei has stagnated in terms of growth for smartphone sales, although it launched a very important new series on the market, and this is the effect of the sanctions imposed in the USA. It is extremely possible that in Q3 2019 Huawei's sales will decrease substantially due to the US sanctions, the decrease may be, from a percentage point of view, or per units, greater than what is normally seen between the two fiscal quarters.
Huawei managed not to register a decrease in smartphone sales between Q1 and Q2 2019, as a first, thanks to a substantial increase in sales in China, where patriotism and government recommendations helped. Huawei managed to increase its market share in China to 38%, with sales of approximately 37 million smartphones, so more than half of what it sold globally, and this shows what helped it.
Huawei it would have seriously dropped in sales if it hadn't managed to convince the Chinese, together with the local government, to buy its products and keep it above Apple's.
