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Huawei Revenue Soars to $107 Billion Despite U.S. Security Concerns

Chinese telecom giant Huawei posted a strong 2018, despite security concerns in the United States.

Huawei told investors on Friday that it generated 721.2 billion yuan ($107.1 billion) in revenue in 2018, marking the first time the company has made more than $100 billion in one year. Huawei added that its profits jumped 25.1% compared to 2017 to 59.3 billion yuan ($8.8 billion).

A large chunk of Huawei’s success during the year came from its consumer division, which includes smartphone sales. The company’s smartphones aren’t available in the U.S., but have been tallying record-breaking sales numbers in China and elsewhere around the world. Samsung is still the world’s largest smartphone maker, but Huawei has been stealing market share from the Korean tech giant for years. Apple’s iPhone has lost market share to Huawei.

The company’s success has come despite the U.S. having concerns that its equipment, which includes the technology that powers wireless network communication, can be used by the Chinese government for espionage. Huawei has categorically denied those claims, but the U.S. has still banned its equipment. The U.S. has also called on allies not to use Huawei equipment—a request that Germany and some other countries aren’t so willing to fulfill.

Looking ahead, Huawei didn’t say what 2019 might look like. However, the company did tell CNBC, which earlier reported on the earnings, that its revenue in January and February was up 30% compared to the first two months of 2018.