Huawei's revenue growth is weak due to ongoing US restrictions
Huawei's revenue growth is weak due to ongoing US restrictions

The emerging coronavirus (COVID-19) and the COVID-19 epidemic are increasingly affected by revenue due to supply chain troubles caused by US restrictions on transactions with Chinese companies. Huawei grew in the third quarter of this year.

Just before that day, Huawei, the world's largest manufacturer of communications equipment, announced the launch of its flagship Mate 40 cell phone of the Mate 40 series. The announcement came after Sweden became the latest country to ban the company from banning infrastructure construction. As for the 5G network, at the instigation of the United States, the company saw that there was a relationship between Huawei and the Chinese government, but the company denied that relationship.

After at least four years of double-digit growth, sales from January 2020 to September 2020 rose 9.9% year-on-year to CNY 617.3 billion, according to the company in a statement last Friday: "$ 100.4 billion."

According to Reuters calculations, sales in the third quarter alone rose 3.7 percent year on year to 217.3 billion yuan.

Huawei said the net profit margin for the first nine months was 8.0%, compared to 8.7% for the same period last year.

After the United States announced similar measures in May 2019, it effectively blocked Huawei's access to US chipmaking software and equipment in the spring of 2020, and it gradually came into effect.

The Kirin chipset series developed by Huawei has helped the company to climb to the forefront of the global smartphone market as it has outpaced many of the leading companies including Apple and overtook Samsung in the short term over the past few years. In the mobile market, Huawei is now second only to Samsung and Apple.

Earlier this year, Richard Yu, CEO of Huawei Consumer Business Group, said the US restrictions mean Huawei will soon stop making advanced Kirin chips. Analysts assume the slide will be empty next year.

Previous Post Next Post