Huawei’s nine-month revenue growth slows as U.S. restrictions bite

Huawei’s nine-month revenue growth slows as U.S. restrictions bite

China’s Huawei Technologies Co Ltd reported a 9.9% rise in nine-month revenue on Friday, as U.S. export restrictions and the global COVID-19 pandemic weakened sales growth in products such as smartphones and telecoms equipment.

Revenue reached 671.3 billion yuan ($100.44 billion) over January-September, it said in a statement, without providing a segment breakdown. Revenue grew 13% in the January-June period.

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

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.

Overseas, however, Huawei has faced sluggish sales, due in part to its lack of access to Alphabet Inc’s GOOGL.O Google Mobile Services.

Last week, Reuters reported that Huawei is in talks with Digital China Group Co Ltd 000034.SZ and others to sell parts of its Honor budget brand smartphone business in a deal that could fetch up to 25 billion yuan.

Huawei also faces pressure abroad in its telecommunications infrastructure business. This week, Sweden said it would restrict Huawei and Chinese rival ZTE Corp 000063.SZ0763.HK from servicing its upcoming fifth-generation (5G) network.

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