Latest financial report indicates that Huawei continues to grow in revenue and profit, but at a slower pace
There are so many trade restrictions imposed by the United States government that it is hardly surprising: the Huawei has just released its financial results referring to the third quarter of 2020; the document points out that, in the accumulated result for the year, the company’s growth slowed.
In the third quarter, Huawei’s revenue closed at 217.3 billion yuan, equivalent to $ 32 billion. This is an increase of 3.7% over the same period in 2019, when the collection was 209.5 billion yuan.
Revenue from January to September 2020 was 671.3 billion yuan (about US $ 100 billion), up 9.9% year-on-year – in the same period of 2019, revenue was 610 , 8 billion yuan.
The numbers are interesting, as they indicate that, despite the trade sanctions applied by the United States, Huawei has maintained a strong presence in the market. In this sense, it is worth mentioning that the net profit margin was 8% in the first nine months of the year.
The problem is that Huawei posted revenue growth of 24.4% in the first three quarters of 2019 and net profit of 8.7% in the period. If from 2020 to 2019 the revenue growth was 9.9%, it is visible that the company has been losing pace.
COVID-19 has a share of blame in this scenario, but it cannot be said that the company has not been affected by trade sanctions that prevent it, for example, from launching phones with the Google ecosystem or chips from vendors like Qualcomm, although the company does not specifically mention this problem in its report.
But the worst is yet to come. For this year, Huawei also relied on supplying processors on a sufficient scale to perform a good volume of device production. But, from 2021, production of the brand’s smartphones is expected to drop considerably.
Furthermore, it is not only the United States that is closing in on Huawei. Governments in Australia, the United Kingdom and several other countries are already moving to prevent or limit the implementation of 5G networks with company technology.
With information: TechCrunch.