Chinese tech conglomerate Huawei Technologies, the world’s No. 1 telecom gear manufacturer and the second-largest smartphone vendor after S. Korea’s Samsung Electronics, said on Friday that the US sanction-hit Chinese tech mogul had witnessed a rise of 9.9 per cent at its revenues over the first nine months of the year, though the company’s growth had depreciated sharply over the narratives of a number of US sanctions that barred it from using US-borne technologies alongside the pandemic-led fiscal drawdown all over the world.
On top of that, the Chinese tech behemoth had declined to provide any full-year profit forecast, while it had not released the sales figures for the fiscal third quarter of the year that ended on September 30 as well, though the company had reported a plunge of 13.1 per cent in growth over the first nine months of the year.
If truth is to be told, Huawei has been struggling since mid-2020 while the Trump Administration had inclined a crippling sanction which in effect had cut off its access into the American tech-components, while Trump Administration had also reiterated that the Huawei Technologies could be used to conduct espionage on behalf of Beijing, an allegation that the world’s largest telco gear maker had repeatedly denied.
Huawei growth slows as markets brace for a biforked tech industry
Meanwhile, as tensions between Washington and Beijing had accelerated sharply over the recent months, in particular over the autonomous status of the China-controlled island city of Hong Kong, a technology conflict between the United States and China had bolstered analysts’ view that the global markets should brace for a divided technology spheres with incompatible standards, latest example of which could be an entrance of Huawei’s alternative operating system since it was prevented from using Google’s Android OS for its smartphones.
Though, analysts had also warned that the latest tug of war between US and China over dominance in tech industries would likely to slow down innovation and step up prices. Nonetheless, according to Huawei’s statement that was released earlier on Friday, Huawei’s sales over the first nine months of the year had been $100.4 billion, while it reported a net profit of 8 per cent, down from a first-half forecast of 9.2 per cent as sales outside China had weakened markedly.
However, while Huawei’s sales at its domestic market had spiked sharply, the tech conglomerate’s market share for smartphones rose to 19.6 per cent over the second quarter of the year that ended on June 30, up from 17.7 per cent at the same time a year earlier, data from Canalys had unveiled.