Huawei is beginning to feel how severe and profitable the heavy sanctions the US has been imposing on it for months, reports the American media CNBC. The Chinese giant is therefore seeing slow growth in the third quarter of 2020. In particular, the indicators are characterized by sales of 217.3 billion yuan in September (only 3.7% of the increase compared to 209.5 billion yuan recorded last year over the same period).
For the first nine months of the year, Huawei had sales of 671.3 billion yuan, according to CNBC, an increase of 9.9% over the first three quarters of 2019 (610.8 billion yuan registered yuan). For comparison, Huawei’s growth in the first nine months of 2019 (compared to the same period of 2018) was 24.4%.
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Likewise, Huawei’s net income for the first three quarters of 2020 has decreased compared to previous results (8% this year versus 8.7% last year). As CNBC summarizes, the sanctions imposed by the American authorities have severely affected Huawei’s activities outside the Chinese market, particularly in the smartphone space, where the brand bears the brunt of the lack of Google services. against the competition. In China, however, the company continues to thrive, which allows it to contain the break without preventing its growth from slowing.
In its report, Huawei believes it has “largely achieved its forecasts”. “As the world grapples with the COVID-19 pandemic, Huawei’s global supply chain has been under severe pressure and Huawei has been manufacturing and operating in mounting difficulties,” the rest of the company explained in a press release before adding that it “would do its best to find solutions, survive and move forward to meet its obligations to its customers and suppliers”.
A challenge that is all the more difficult to face as US sanctions are tightened. The latter, for example, prevented Huawei for several months from having its smartphone processors (HiSilicon Kirin) manufactured by its subcontractor TSMC. As the main founder of the market, the Taiwanese group is equipped with the latest engraving technologies, which are particularly important in order to maximize the performance of mobile SoCs from one year to the next.