Will Huawei go public ahead of Apple?

Huawei, the largest Chinese manufacturer of telecommunications equipment and smartphones, could be valued at a higher price than Apple if it went public.

Reuters revealed a few days ago that China would press for an IPO of Huawei.

Huawei vs Apple

By evaluating Huawei based on the same criteria as Apple, the company is worth “only” 128 billion dollars. Nevertheless, the preference of Chinese investors for technology stocks could lead to a higher valuation, according to PhoneArena.

Last year, Huawei’s operating profit amounted to $5.1 billion. But Huawei is likely to be valued at a level higher than its real revenues. In 2019, Ni Guangnan, technical director of Lenovo, estimated the value of the Chinese company at $ 1.3 trillion, or $ 1,300 billion.

However, at the time, Apple’s market capitalization had just exceeded $ 1,000 billion. The estimate therefore already placed the Chinese company above the American giant. Today, Apple is now valued at $3.4 trillion.

Last year, Huawei’s performance was hampered by both the Covid-19 pandemic and US sanctions. However, its smartphone business has recently rebounded and is expected to improve this year.

The US sanctions have not affected its semiconductor business and the company has launched a smartphone with a 7 nanometer processor, triggering a wave of “patriotic” spending in China.

Source: ZDNet.com