Huawei's Q3 growth slows as 'intense' U.S. pressure hits supplies

Yolanda Curtis
October 23, 2020

China's Huawei Technologies Co Ltd reported a 9.9% 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.

During the first three quarters of 2020, the Chinese telecoms and smartphone giant reported revenue of 671.3 billion yuan (about Dollars $100.7 billion), an increase of 9.9% year-over-year, with a profit margin of 8%.

Huawei just yesterday introduced the Mate 40 series at an online launch event. Privately held Huawei provides such details only for half-year and full-year earnings.

The company wrote that "as the world grapples with COVID-19, Huawei's global supply chain is being put under pressure and its production and operations face significant challenges". The company added that it will do its best to "find solutions, to survive and forge forward, and to fulfill its obligations to customers and suppliers".

Bad news has been mounting for Huawei, which the United States alleges is controlled by Beijing.

Washington has essentially barred Huawei from the lucrative United States market and pressured allies to do the same.

Huawei today announced new web services to take on Microsoft and Google. The full impact of those policies haven't been realized yet, because US government has granted Huawei several waivers, including one that will delay the implementation of a ban on commercial trade with Huawei and ZTE until May 2021.

But analysts said the writing is on the wall for Huawei, which may need to make major business adjustments.

Consumer Business Group Chief Executive Richard Yu earlier this year said Huawei would soon stop making high-end Kirin chips as US restrictions on supplying the firm take effect.

"Huawei is not going anywhere".

Huawei shipped 55.8 million devices in the April-June period, trumping Samsung and becoming the world's top smartphone seller on robust domestic sales, according to data from research firm Canalys in July.

Huawei said last month that its nascent homegrown operating system could be available on smartphones from early next year as it rushes to build an alternative app ecosystem.

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