Huawei revenue grows to reach $32.5 bn in third quarter

Huawei revenue grew marginally to reach 217.3 billion yuan or $32.51 billion during the third quarter of 2020, versus 209.5 billion yuan a year earlier, despite US restrictions on its business.
Huawei P30 smartphoneHuawei Technologies reported that its January-September revenue rose 9.9 percent to 671.3 billion yuan or $100.43 billion during the first nine months of 2019.

Huawei did not provide a segment breakdown of the revenue. Huawei generates sales from telecom network, smartphones and enterprise network.

Huawei posted 3.7 percent rise in quarterly revenue, ending the double-digit growth run it enjoyed earlier this year.

Net profit margin for the nine months was 8.0 percent, versus 8.7 percent over the same period a year earlier, Huawei said.

The slowdown comes as U.S. export restrictions and the COVID-19 pandemic weakened sales growth in products such as smartphones and telecoms equipment.

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, Reuters reported.

Overseas, Huawei has faced sluggish sales, due in part to U.S. restrictions blocking its access to Alphabet’s Google Mobile Services.

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

Huawei faces pressure abroad in its telecom infrastructure business. This week, Sweden said it would restrict Huawei and Chinese rival ZTE from servicing its upcoming 5G network.

Huawei does not share any guidance on its revenue for the full year.

Huawei will leverage its strengths in ICT technologies such as AI, cloud, 5G, and computing to provide scenario-based solutions, develop industry applications, and unleash the value of 5G networks along with its partners.

Its stated goal is to help enterprises grow their business and help governments boost domestic industry, benefit constituents, and improve overall governance, Huawei said in a media statement issued on Friday.