The Chinese technology developer, Huawei Revenue Growth has witnessed a sharp slowdown in the revenue during the first quarter of the current year. As a result of the impact of the US trade blacklist and the COVID-19 outbreak, the company summed up the quarter at 182.2 billion yuan (25.8 billion US dollars). It was a slight upscale than the previous year.
During the Q1 of 2019, the Chinese tech manufacturer wrapped a total of 179.7 billion Yuan. Hence, it makes merely 1.4% growth in the revenue as compared to the last year’s income. To recall, in 2019, the company has recorded a whopping 39% increase in the first quarter against the Q1 of 2018.
At the same time, Huawei also reported a net profit margin of 7.3%. Huawei’s revenue growth is still a slight reduction from 8% in the first quarter of 2019. Amidst all of these calculations and headwinds associated with the US political pressure and novel coronavirus, the company still regards the growth to be resilient. Huawei attributed this phenomenon to its employee share-ownership structure, investment in R&D (Research and Development), and business continuity planning.
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In 2019, the Chinese firm was placed on the US Entity List. Under it, the native companies cannot do business with other units without a special license. The US had alleged the Huawei equipment could enable Chinese spying. But Huawei has denied the claims from roots.
As a result, Huawei has diversified its supply chain along with designing some key components like chips, etc. But its smartphone business continues to be hurt the most by the trade restrictions as Google was too in the practice to cut ties with Huawei. Ultimately, Huawei’s latest smartphones, i.e. Huawei P40 will not capture the full edition of the Android and Google apps.
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Terry Ts