Huawei is seeing a sharp decline in its growth as the impacts of the US sanctions take hold. In the third quarter, the company saw its margins dip as the reinforced regulation disrupt its operations.
According to a CNBC report, the Chinese tech giant had brought in 217.3 billion yuan (roughly 31.91 billion US Dollars) in revenue in September 2020. This marks a slight growth of 3.7 percent from 209.5 billion yuan from last year (roughly 31 billion US Dollars). The first nine months combined had the company bring in 671 billion yuan (roughly 98.57 billion US Dollars) in revenue, which marks a growth of 9.9 percent from the same period last year.
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This showcases a significant slowdown in growth as the first nine months of 2019 had the Chinese smartphone maker sees revenue growth of 24.4 percent over 2018. Furthermore, Huawei’s net profit margins were 8 percent for the first nine months, which was also lower than the 8.7 percent from back in 2019. The effects of the recent US sanctions are clearly showing its effects on the consumer electronics brand.
For those unaware, Huawei was placed on the Entity List back in 2019, and since then faced various pressures from Washington. The ban had also caused the company to lose Google support for its Android smartphones. This meant that its overseas smartphone business fell sharply during, despite its home market still thriving. Additionally, losing its primary chip supplier TSMC was another major blow to the company earlier this year.
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