Huawei sales off 32% after US sanctions, smartphone sale

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Sales of Chinese tech giant Huawei fell 32% in the first nine months of 2021 from a year earlier under US sanctions and sales of its Honor smartphone brand

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BEIJING — Sales of Chinese tech giant Huawei fell 32% in the first nine months of 2021 from a year ago under US sanctions and sales of its Honor smartphone brand, according to data released on Friday.

Huawei Technologies Ltd.’s smartphone and other consumer-oriented businesses have been “significantly affected”, but sales to phone carriers and other commercial customers “remain stable,” its president Guo Ping said in a statement.

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The company announced that revenue for the nine months ended September was 455.8 billion yuan ($71.3 billion), with a profit margin of 10.2%. This was lower than the 671.3 billion yuan in revenue reported for the same period of 2020.

Huawei, the biggest maker of network gear, is struggling to capture market share under sanctions that block access to most US processor chips and other technology.

Huawei has responded by emphasizing that its home China market and network technology for hospitals, factories and other industrial customers and other products will not be affected by US sanctions. The company has released its smartphone operating system, HarmonyOS, and says it expects to cross 150 million users by the end of this year.

The company did not provide a breakdown of sales by region or type of business.

Huawei, headquartered in the southern city of Shenzhen, says it is owned by Chinese employees, who make up half of its 197,000 workforce in 170 countries.

Previously, Huawei reported that 2020 sales rose 3.8% in 2020 to 891.4 billion yuan ($135.8 billion) from a year earlier, but that growth was down from 2019’s 19.1% growth.

Huawei’s latest results were disappointing compared to the period before it sold Honor to a state-led investor group in November 2020, separating it from sanctions on the parent company to revive the brand. Honor has taken US permission to buy chips from Qualcomm Inc.

According to Canalys, Honor shipped 14.2 million handsets in the three months ending September, more than double the previous quarter. It reached No. 3 in the Chinese market, behind Vivo and Oppo and ahead of Xiaomi and Apple.

Toby Zhu of Canalys said in a report, “HONOR is now giving a clear indication that the brand is back after splitting from Huawei.”

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Huawei Technologies Limited: www.huawei.com

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