Huawei’s Q3 Revenue Sees Only 1% Increase Despite New Smartphone Release
Chinese tech giant Huawei has reported that its revenue for the third quarter of this year only increased by 1% compared to the same period last year. This is despite the company’s release of a popular new smartphone in late August and growing sales within its electric car venture. Huawei’s revenue for the first three quarters of the year rose by 2.4% year-on-year to 456.6 billion yuan ($62.33 billion), the highest for that period since 2020. U.S. sanctions on Huawei began in 2019, restricting its access to high-end technology.
Huawei’s New Mate 60 Pro Smartphone Offers Impressive Download Speeds
Despite the restrictions imposed on Huawei, the company’s new Mate 60 Pro smartphone has received positive reviews for its download speeds associated with 5G, thanks to an advanced semiconductor chip. The phone was quietly launched in China in late August, and more than 1.6 million Mate 60 series devices were sold during the first six weeks of sales, with approximately 75% of units sold being Pro models.
Huawei Expands Presence in China’s Electric Vehicle Market
Huawei has also established itself in China’s fast-growing new energy vehicle market by selling its operating system and components to car manufacturers. In December 2021, Huawei launched its own car brand, Aito, in collaboration with manufacturer Seres. Aito’s latest M7 received over 60,000 orders within a month of its release, and pre-orders for the forthcoming M9 SUV have already surpassed 15,000.
Profit Margin Increases for Huawei
Huawei reported a net profit margin of 16% for the first three quarters of the year, up from 15% in the first half. However, the company did not disclose revenue breakdowns by business segment. Huawei’s third-quarter revenue reached 145.7 billion yuan, a 1% increase from the same period last year. The company also focused on expanding its patent licensing business and ventured into international markets by expanding its cloud business to Saudi Arabia and opening a research lab in Finland for testing wearables.
Hot Take: Huawei Faces Modest Revenue Growth Despite Challenges
Despite facing challenges due to U.S. sanctions and restrictions, Huawei has managed to achieve modest revenue growth in the third quarter of this year. The release of its new Mate 60 Pro smartphone and expansion into the electric vehicle market have contributed to this growth. However, it remains to be seen how Huawei will navigate ongoing obstacles and maintain its position in the global tech industry.
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