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| Huawei sales fell in the third quarter |
Huawei's revenue fell 38% in the third quarter compared to the same period a year earlier, deepening the decline by 29.4 percent in the first half of the year.
The US sanctions have weakened the smartphone activities of the Chinese telecom giant. New growth potential is just beginning.
Huawei is a privately owned company but publishes annual financial data on a regular basis, and revenue in the first three quarters was 455.8 billion yuan ($71.32 billion), down by a third from 671.3 billion yuan in the same period last year.
Net profit margin for the three quarters was 10.2%, up from 8% in the same period last year and 9.8% in the first half of 2021.
According to Reuters calculations, sales in the third quarter amounted to 135.4 billion yuan. The Chair alternately said that the performance was as expected.
Former US President Donald Trump blacklisted the company in 2019 and banned it from acquiring key technologies from the United States.
This hinders its ability to develop its own chips and source components from external suppliers. These restrictions severely damaged Huawei's cellular business.
The alternate president said in September that smartphone sales could fall by $30 billion to $40 billion this year.
Although the company did not break down third-quarter data by type of business, the company said the decline was due to its consumer business.
The company represented 8% of the Chinese smartphone market in the third quarter. According to Counterpoint Research, it's 30% lower than it was when it became the market leader a year ago.
Huawei's smartphone industry is experiencing great success
On the other hand, Counterpoint said: Honor was previously a sub-brand that Huawei sold last November in order to maintain its vibrancy. Compared to the same period the previous year, sales of mobile phones increased by 96%. It occupies 15% of the Chinese market.
Huawei is committed to finding new sources of revenue growth beyond the base station and mobile infrastructure, including its cloud businesses, smart ports, mining companies, and smart electric vehicle companies.
In June this year, the company launched the Harmony operating system for smartphones and hopes to provide software for automakers. However, executives said it will take some time for these new product lines to become effective.
However, the company was strengthened by the return of the chief financial officer and the daughter of the founder. After nearly three years of fighting in Canada and extradition to the United States, Meng Wanzhou resumed operations. Chinese officials said they dropped the charges against them in order to end the diplomatic crisis.