Huawei's revenue rises 15% in the first half of the year with increased market share in the Chinese mobile phone market.

(Reuters)- Chinese company Huawei saw a 15 percent increase in revenue in the first half of the year, with industry data showing gains in domestic market share for the mobile phone maker that has been excluded from the US market due to security concerns.

The world's third-largest mobile phone maker reported on Tuesday that its revenue rose to 325,7 billion yuan ($47,7 billion) in the period due to strong performances in its businesses, including mobile phones, telecommunications equipment and information technology infrastructure services. The company maintained the growth rate seen in the same period of the previous year.

The operating margin for the period rose to 14 percent, compared to 11 percent a year ago.

The Chinese market is crucial for Huawei, which is under increasing scrutiny in the US, Australia, and other nations due to concerns that the company is facilitating espionage by the Chinese government. The manufacturer has been unsuccessful in establishing its mobile phone business in the US. And Australia is preparing to ban Huawei from supplying equipment for its 5G broadband network, sources said.

Huawei has denied facilitating espionage, stating that it is a private company not controlled by the Chinese government and not subject to Chinese security laws abroad.

The manufacturer increased its share of the Chinese smartphone market to a record 27 percent in the second quarter, compared to 21 percent a year earlier, according to market research firm Canalys.

Huawei's consumer division, which houses its smartphone business, accounted for approximately one-third of its total revenue last year. The company derived half of its revenue from its carrier business.