Huawei Faces Revenue Impact from US Sanctions... Growth Momentum Slows Down

[Asia Economy Reporter Dongwoo Lee] Huawei's revenue growth has slowed due to US sanctions.

According to foreign media including Global Times on the 24th, Huawei announced that its revenue from January to September this year was 671.3 billion yuan (approximately 114 trillion won), an increase of 9.9% compared to the same period last year. This is 3.2 percentage points lower than the 13.1% revenue growth rate in the first half of the year. The net profit growth rate from January to September also fell to 8%, down from 9.2% in the first half.

Huawei is facing setbacks in smartphone sales in overseas markets because it cannot use Google's Android operating system due to US government sanctions. Additional sanctions that began on the 15th of last month have made it difficult to procure advanced semiconductors, putting the smartphone business in crisis.

However, Global Times cited experts who expressed hopeful prospects that Huawei will be able to overcome its toughest period thanks to Chinese consumers' 'patriotic consumption.'

The Mate40 series smartphone, unveiled by Huawei on the 22nd, sold out in just 28 seconds during the pre-sale on China's online mall JD.com the day before. This surpassed the record of Apple's new product, the iPhone 12, which sold out in 30 seconds.

Consumers lined up in front of Huawei's flagship stores to reserve purchases of the Mate40.

Richard Yu, CEO of Huawei's Consumer Business Group, previously stated that the Mate40 would be the last smartphone equipped with Huawei's high-performance semiconductor 'Kirin 9000.' The Kirin 9000 chip was designed by Huawei and manufactured by Taiwan's TSMC, the world's largest foundry (semiconductor contract manufacturer).