MILAN, Oct 27 (Class Editori) — Huawei Technologies registered the second consecutive quarter of revenue growth in the third quarter as signs emerged about the business beginning to stabilize itself after years of US sanctions.
The Chinese telecommunication giant’s revenues increased by 6.5% to 144.2 billion yuan, about 20 billion dollars, in the third quarter compared to one year ago, according to financial uncertified data published today by the company.
Huawei stated that its main business line, telecoms equipment, has grown, while the long-standing decline in its consumer devices business slowed down. It is the second consecutive quarter of revenue growth for the Shenzhen-based Group, ending more than a year of declining revenues caused by the slump in smartphone sales and restrictions on sales of its telecoms equipment in many countries.
Huawei has been hit by US export restrictions, including a ban on purchasing advanced chips made with US technology by 2020. The sanctions have decimated the company's smartphone business, once the world's largest and a major source of growth.
They have also dented its telecoms equipment sales business, although analysts say the effect has been less pronounced because such equipment requires fewer high-end chips and relies more on long-term commercial agreements.
To compensate for the restrictions, Huawei has developed a number of new business lines that are less chip-dependent and include cloud computing services, autonomous driving components, smartphone software and consumer gadgets such as smartwatches and tablets, although they have not offset the sharp decline in smartphone sales. The company has also invested heavily in China's fast-growing chip manufacturing sector through its Hubble Technology Investment arm.
Huawei's sales in the first three quarters of the year fell by 2.2% from the same period a year earlier, due to a 13.9% slump in the first quarter. Profit margin, excluding net gains from asset sales, stood at 6.1%. The company sold some assets to cope with restrictions on chip access, including the Honor brand of budget smartphones.
(Source:Class Editori)
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