- Chinese tech giant Huawei reported revenue figures on Friday, showing a mere 1% increase in the third quarter compared to the previous year, according to CNBC calculations.
- In contrast, the launch of a new smartphone by Huawei during the three-month period ending in September led to a sales growth in China, while Apple experienced a decline in sales, as reported by Counterpoint Research.
- Huawei’s revenue during the first three quarters of the year reached a record high of 456.6 billion yuan, marking a 2.4% increase compared to the same period last year.
Visitors line up in front of the Huawei flagship store on Nanjing East Road, one of the city’s main commercial and tourist area, in Shanghai, China, on Sept. 30, 2023.
Bloomberg | Bloomberg | Getty Images
BEIJING — Despite releasing a popular new smartphone in late August and witnessing sales growth within its electric car venture, Chinese tech giant Huawei reported only a 1% increase in revenue during the third quarter compared to a year ago, according to CNBC calculations.
Huawei’s revenue for the first three quarters of the year rose by 2.4% year-on-year, reaching 456.6 billion yuan ($62.33 billion) – the highest for the period since 2020. This comes despite U.S. sanctions imposed on the company in 2019.
Reviews of Huawei’s new Mate 60 Pro smartphone have indicated its capability to offer download speeds associated with 5G, thanks to an advanced semiconductor chip, despite restrictions on Huawei’s access to high-end tech.
During the first six weeks of sales, more than 1.6 million Mate 60 series devices were sold, with approximately 75% being Pro models.
In contrast, Apple is expected to sell 10 million units of its new iPhone 15 in China this year, for a total of 45.5 million iPhone sales in the country, according to estimates by Shanghai-based CINNO Research.
Huawei has also made a significant presence in China’s new energy vehicle market through collaborations with car manufacturers.
This year, Huawei launched its own car brand Aito, with sales exceeding 60,000 for the latest M7 model.
Despite not specifying revenue breakdown by business segment, Huawei reported a net profit margin of 16% for the first three quarters of the year, up from 15% in the first half when revenue grew by 3.1%.
Furthermore, Huawei expanded its patent licensing business and continued its international market expansion by introducing its cloud business in Saudi Arabia and opening a research lab in Finland for wearables testing.
Huawei has faced ongoing allegations of being a national security risk due to alleged links to the Chinese Communist Party and the country’s military, claims which the company has consistently denied.
— CNBC’s Arjun Kharpal contributed to this report.
