GlobalData Huawei Suffers Little from US Ban

In May 2019, the US export ban against Huawei came into force, and the company's sales rose by 18 percent to 120 billion dollars in 2019.

According to GlobalData, Huawei was able to realign its supply chain to minimize the impact of the U.S. sanctions. In addition, Huawei still generates the majority of its sales in China itself; in 2018, the figure was 52 percent. In Europe, the Middle East and Africa, Huawei generated 29 percent of its sales, compared to only 1 percent in the US.

"Huawei sees Europe as a key market for the supply of G5 equipment. According to Catherine Chen, Huawei's senior vice president, Huawei has won 50 commercial 5G contracts worldwide to date, 28 of them with European network operators," said Kantipudi Pradeepthi, research analyst Telecoms Market Data & Intelligence for GlobalData.

The US government had put pressure on the EU to persuade member states not to consider Huawei for the construction of their 5G networks. But EU countries feared that the costs would then increase by 62 billion dollars because Huawei was offering cheaper services than competitors such as Ericsson and Nokia. They also feared that the introduction of 5G technology would be delayed by 18 months. Now the EU states only want to keep Huawei away from the core of the network infrastructure.

In Australia, Huawei is involved in the 4G network but not in the core infrastructure. Huawei's equipment will not be used by Vodafone Hutchison in Australia to build the 5G network and has switched to Nokia equipment.

India, the second largest telecom market in the world, recently allowed Huwaei access to 5G trial projects. "Huawei could therefore soon fully regain its position in the global telecom market," says Kantipudi Pradeepthi, summarizing the results of his analysis.

GlobalData predicts that the share of 5G subscribers in the Asia-Pacific region will rise to 21 percent by 2024. But even then 4G will still dominate.