Huawei Technologies today announced its earnings for the past nine months with figures beating off expectations.
Per the announcement, the company stated that the revenue generated by the company for the first three quarters in 2020 comes off at 671.3 billion Chinese Yuan (approximately US$100.6 Billion), a growth of 9.9% year over year. The company also reported a net margin profit of 8% for the period spanning January to September.
Huawei Technologies Co Ltd has experienced a huge strain in its business operations not just because of the global strain in the world’s supply chain caused by the novel coronavirus pandemic but also because of the U.S.-China tensions that saw the US place a ban that stopped the company from sourcing its most needed chips from its U.S. suppliers primarily Qualcomm Inc (NASDAQ: QCOM).
“As the world grapples with COVID-19, Huawei’s global supply chain is being put under intense pressure and its production and operations face significant challenges. The company continues to do its best to find solutions, survive and forge forward, and fulfill its obligations to customers and suppliers,” Huawei said in a statement. “Moving forward, Huawei will leverage its strengths in ICT technologies such as AI, cloud, 5G, and computing to provide scenario-based solutions, develop industry applications, and unleash the value of 5G networks along with its partners.”
The Huawei earnings figure came without a detailed breakdown of its individual business unit performances but the revenue growth of 9.9% percent came as a surprise owing to the company’s strained sales.
Huawei Earnings Expectations with Its Latest Phone Release, The Mate 40
Huawei Technologies might have gotten a positive boost to shoot up its earnings as the company recently unveiled its new 5G enabled Smartphone series, the Mate 40. As reported by Reuters, the new smartphone is poised to see increased sales in China as that has been Huawei’s basic target owing to the U.S. sanctions.
There is a concern to how much the Mate 40 will propel revenue surge in Huawei as many fears that the company is gradually using up its Kirin Chips, the alternative it has relied on since the U.S. sanction loomed. The Mate 40 was built with the Kirin 9000 chipset, a phone building component that Huawei has not been able to scale up commercially when compared to its U.S. supplier.
Reuters reported that the Mate 40 may be the last phone of its type that Huawei will churn out and this factor is bittersweet as it would propel more sales in Chinese markets as most people would want to buy the product as the expectation for more latest models to emerge is slim. Huawei is however exploring other options to acquire its needed chips, amongst which is anticipation that the United States Authorities will grant QUALCOMM the license to continue to execute trades with the company.
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.