Sanctions hit Huawei sales

Sanctions hit Huawei sales

Huawei also faces pressure abroad in its telecommunications infrastructure business.

China’s Huawei Technologies has reported a 9.9% rise in nine-month revenue, as US 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 (€85bn) in the nine months to the end of September, it said, without providing a segment breakdown. Revenue grew 13% in the January-June period.

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 Google Mobile Services.

Huawei also faces pressure abroad in its telecommunications infrastructure business.

This week, Sweden said it would restrict Huawei and Chinese rival ZTE from servicing its upcoming fifth-generation (5G) network.

Huawei is reportedly in talks with Digital China Group and others to sell parts of its Honor budget brand smartphone business in a deal that could fetch up to 25 billion yuan.

Consumer Business Group CEO Richard Yu earlier this year said Huawei would soon stop making high-end Kirin chips as US restrictions on supplying the firm take effect. Analysts expect its stockpile of the chips to run out next year.

-Reuters

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