Huawei’s deputy chairman said that the company expects 5G to start contributing to revenue when China launches its services in 2020.
In fact, the company has said that it has already secured over 50 5G commercial contracts despite the accusations and bans thrown its way by the US.
“Clearer picture by mid-next year”
Whilst Huawei is confident that 5G technology will contribute to revenue, the company is aware that it could be quite some time and a few more obstacles to overcome before the benefits are seen.
The roll-out may be accelerating in Asia but the company still says that it will need to “wait for a while", before 5G contributes a sizeable share to revenue.
Furthermore, Huawei told reporters, “We will have a clearer picture by mid-next year because by then the first batch of 5G commercial roll-outs in China will reach a certain phase."
While optimistic, the company maintains a degree of humility in light of recent security concerns. Much of this will be determined by the UK’s and India’s decisions on Huawei 5G.
A hidden agenda?
Huawei has continuously denied allegations thrown its way by the US and claims that America is trying to slow down its industry leadership to allow other US companies to benefit.
However, last week, Huawei founder and CEO Ren Zhengfei said that he wants to resolve the conflict. In order to do so, the company is willing to sell its 5G technology to other countries. This would include everything from patents to blueprints. Huawei would sell this know-how to western countries for a one-off fee. This could see a huge surge in revenue for the company.
In August, Huawei said that the US bans were much weaker than previously expected and doesn’t expect it to negatively impact revenue.
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