China’s Huawei Technologies posted its smallest annual revenue gain in three years, harm by weak overseas sales during an intensifying U.S. campaign to limit its global expansion attributable to security concerns.
Net revenue for 2019 came in at 62.7 billion yuan ($8.9 billion), up 5.6% in contrast with a 25% jump a year earlier.
Its carrier enterprise, which includes 5G mobile network gear, witnessed sales rise just 3.8%.
Accusing Huawei of being a menace to national security, Washington placed the corporate on its so-called Entity List, which restricts sales of U.S.-made items and some other objects made abroad that contain U.S. technology.
U.S. President Trump’s administration is also preparing further measures that may search to restrict the availability of chips to the company, sources accustomed to the matter said this month.
America alleges the Chinese authorities might use Huawei gear to spy, an accusation Huawei has rejected.
Overall income surged 19% to 858.8 billion yuan, lifted by a 34% leap in sales for its consumer enterprise unit, which includes smartphones.
That was mainly pushed by China, where sales soared 36.2% to 506.7 billion yuan. In distinction, income from the Asia-Pacific region, excluding China, plunged 13.9%, while in Europe and the Middle East, sales grew 0.7%.
Huawei dominated smartphone sales in China, taking a 38.5% stake of the market last year compared with 27% in 2018, based on market research firm Canalys.