Skip to main content

Advertisement

Advertisement

Business

Huawei's nine-month revenue growth slows as US restrictions bite

Huawei's nine-month revenue growth slows as US restrictions bite

FILE PHOTO: The Huawei logo is seen at Huawei Connect in Shanghai, China, Sept. 23, 2020. REUTERS/Aly Song/File Photo

SHANGHAI: China's Huawei Technologies Co Ltd reported a 9.9 per cent rise in nine-month revenue on Friday, as US export restrictions and the global COVID-19 pandemic weakened sales growth in products such as smartphones and telecoms equipment.

Revenue reached 671.3 billion yuan (US$100.44 billion) over January-September, it said in a statement, without providing a segment breakdown. Revenue grew 13 per cent in the January-June period.

Net profit margin for the nine months was 8.0 per cent, versus 8.7 per cent over the same period a year earlier.

Consumer Business Group Chief Executive Richard Yu earlier this year said Huawei would soon stop making high-end Kirin chips as U.S. restrictions on supplying the firm take effect. Analysts expect its stockpile of the chips to run out next year.

Domestically, consumers have rushed to buy Huawei smartphones on concerns over the availability of newer models.

READ: Commentary - It was always going to be hard for Huawei to stay in Western markets

Overseas, however, Huawei has faced sluggish sales, due in part to its lack of access to Alphabet Inc's Google Mobile Services.

Last week, Reuters reported that Huawei is in talks with Digital China Group Co Ltd and others to sell parts of its Honor budget brand smartphone business in a deal that could fetch up to 25 billion yuan.

Huawei also faces pressure abroad in its telecommunications infrastructure business. This week, Sweden said it would restrict Huawei and Chinese rival ZTE Corp from servicing its upcoming fifth-generation (5G) network.

READ: Sweden bans Huawei, ZTE from upcoming 5G networks

Source: Reuters/ac

Advertisement

Also worth reading

Advertisement