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AFP
October 24, 2020

Huawei revenue growth wilts under ‘intense pressure’

Business

AFP
October 24, 2020

Shanghai: Huawei´s revenue growth slowed significantly in the first nine months of 2020, the Chinese telecom giant said on Friday, citing "intense pressure" on operations during the coronavirus and as the US moves to cut off its access to vital components.

Huawei, the leading global supplier of telecoms networking equipment and a top smartphone producer, said it grossed 671.3 billion yuan ($100.7 billion) in revenue in January-September, up 9.9 percent year-on-year.

That´s down from 24.4 percent growth over the same period last year, while its profit margin fell to 8.0 percent from 8.7 percent last year.

Washington views Huawei, founded in 1987 by former People´s Liberation Army engineer Ren Zhengfei, as a Chinese espionage threat and has lobbied allies to shun its gear while attempting to block its access to global semiconductor supplies.

"As the world grapples with Covid-19, Huawei´s global supply chain was put under intense pressure and its production and operations saw increasing difficulties," the company said. It vowed to "do its best to find solutions, to survive and forge ahead". The brief announcement made no direct reference to the US pressure, nor did it include a performance breakdown for its various segments, such as smartphone sales. Privately held Huawei provides such details only for half-year and full-year earnings.

But during the online launch of the company´s latest smartphone on Thursday, Huawei´s CEO of consumer products Yu Chengdong said the company was "suffering" from the escalating US pressure, which he called "unfair".

"For Huawei, nowadays we are in a very difficult time," Yu said. Bad news has been mounting for Huawei, which the United States alleges is controlled by Beijing.