Visitors line up in entrance of the Huawei flagship retailer on Nanjing East Road, one of many metropolis’s most important business and vacationer space, in Shanghai, China, on Sept. 30, 2023.
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BEIJING — Chinese tech big Huawei reported revenue figures Friday that confirmed solely a 1% enhance within the third quarter from a 12 months in the past, in keeping with CNBC calculations.
That’s despite the corporate’s launch of a well-liked new smartphone in late August and growing sales inside its electrical car enterprise.
Huawei mentioned revenue for the primary three quarters of the 12 months rose by 2.4% year-on-year to 456.6 billion yuan ($62.33 billion) — the very best for the interval since 2020. U.S. sanctions on the Chinese telco maker began in 2019.
Despite these restrictions on Huawei’s means to entry high-end tech, opinions indicated the corporate’s new Mate 60 Pro smartphone affords obtain speeds related to 5G — due to a sophisticated semiconductor chip.
Huawei quietly launched the phone in China in late August, and declined to share extra throughout a seasonal product launch event in late September.
More than 1.6 million Mate 60 collection gadgets had been bought through the first six weeks of sales, in keeping with Counterpoint Research.
The analysis agency estimated that almost all, about 75%, of models bought had been Pro fashions — that is about 1.2 million models bought.
Apple, which launched its iPhone 15 in September, is anticipated to promote 10 million models of the brand new phone in China this 12 months, for an anticipated complete of 45.5 million iPhone sales within the nation, in keeping with Shanghai-based CINNO Research estimates.
The U.S. firm noticed smartphone sales fall by 10% within the third quarter from a 12 months in the past, whereas Huawei’s sales surged by 37%, Counterpoint Research mentioned Thursday.
Electric car model
Huawei has additionally constructed up a presence in China’s fast-growing new vitality car market, which incorporates hybrid and battery-powered automobiles.
The firm sells its working system and parts, equivalent to for driver-assist tech, to car producers.
In December 2021, Huawei launched its personal car brand Aito in collaboration with producer Seres.
Orders for Aito’s newest M7 topped 60,000 as of Oct. 16, nearly a month after its launch, in keeping with a social media publish from Richard Yu, who heads Huawei’s car-related and shopper enterprise.
On Wednesday, Aito mentioned pre-orders for its forthcoming M9 SUV had topped 15,000.
Profit margin enhance
Huawei just isn’t publicly traded and didn’t get away revenue by enterprise phase in its newest replace.
The telecommunications big mentioned it recorded partial positive factors from the sale of sure companies, however didn’t specify which of them.
Huawei mentioned its web revenue margin for the primary three quarters of the 12 months was 16%. That’s up from a revenue margin of 15% reported for the first half of the year, when revenue grew by 3.1% to 310.9 billion yuan.
Third-quarter revenue was 145.7 billion yuan, up by 1% from the 144.2 billion yuan within the year-ago interval, CNBC calculations of Huawei figures confirmed.
Huawei continued its efforts to increase its patent licensing business through the third quarter with Xiaomi and Ericsson offers, which coated 5G connectivity.
The telecommunications big has rolled out 5G-based enterprise functions in mining, ports and manufacturing, but it surely was unclear from Friday’s launch how a lot revenue, if any, they generated for the corporate within the third quarter.
Huawei additionally pressed forward in worldwide markets by increasing its cloud enterprise to Saudi Arabia in September. The firm mentioned this week it opened a analysis lab in Finland for testing well being and health wearables.
The U.S. has maintained the Chinese telecommunications big is a national security risk resulting from alleged hyperlinks to the Chinese Communist Party and the nation’s army. Huawei has repeatedly denied the existence of any such danger.
— CNBC’s Arjun Kharpal contributed to this report.