Huawei’s financial report for the nine months ending September 2020 – the gradual revelation of the impact of US sanctions


Huawei’s financial report for the nine months ending September 2020 – the gradual revelation of the impact of US sanctions

Huawei’s financial report for the nine months ending September 2020 – the gradual revelation of the impact of US sanctions

News unit EMGblog.com : Huawei on October 23 of this year (November 2, 2019) presented its financial report for three quarters Prime 2020 published. These unaudited results, prepared in accordance with international financial reporting standards, show that Huawei earned 671.3 billion yuan in the nine-month period from January to September this year, which, taking into account the exchange rate of each US dollar equal to 6.8101 Chinese yuan at the end of September 2020, is about 98.57 billion dollars will mature; A figure that shows a 9.9% increase compared to the same period last year. The net profit margin of the company was also 8% in this period and in this way, the Chinese super company achieved the expected results to a large extent.

This is due to the global pandemic of COVID-19 and the pressure caused by American sanctions, company managers had avoided predicting their performance to a large extent, and now they have officially spoken about the success in realizing their desired vision. Huawei in this report to provide information about income and margin The nine-month net profit was enough and it did not say anything about the statistics related to the performance of any of its divisions.

In the third quarter report of last year, the Chinese company was proud of the 26% increase in the supply of smartphones and the growth of its own mobile ecosystem. known as Google US sanctions have been introduced as an alternative to it.

The big Chinese company that on Thursday October 22 (Aban 1) from the flagship series Mate 40 unveiled, according to the usual procedure in any of the quarterly reports of this year The sale of smartphones itself has not been mentioned. As one of Huawei’s spokespersons, in response to a question about not providing these statistics in this year’s third quarter report, merely pointed out that the company “will release additional details related to its business performance at the appropriate time.”

Huawei Mate 40 Pro
The Mate 40 series phones are considered to be the first smartphones to be introduced after Huawei completely cut off access to the American advanced semiconductor market or based on US technologies, and it is likely that they will be the last example of the company’s production devices to use the chips. Equipped with advanced Kirin.

According to the report of Canalys research institute, in the second quarter of 2020, Huawei was the leader in terms of smartphone sales in the world, and for the first time in nearly a decade, it was able to occupy a position that is usually in Apple or Samsung. After that, the United States tried to increase the pressure on the company, and this time it hit harder. Exactly one year after The Chinese giant is blacklisted by the US Department of Commerce New bans on exports to Huawei imposed and limited the company’s access to those products of foreign chip companies that use American technologies in the design and production process. These changes came into effect in mid-September, thus enabling the provision of advanced 5nm chips. Kirin 9000, which are produced with American equipment at TSMC, was limited. Of course, these new regulations still left the way for the apparently 8.8 million pre-ordered chips to be received. But Huawei’s extensive use of these chips in flagships such as Mate 40 Pro, as well as 5th generation network stations, will probably cause stock to run out quickly. In this way and if this situation continues, Huawei should quickly adopt alternative strategies to face the restrictions. As some sources have reported the possibility of stopping the production of high-end phones or trying to enter Huawei in the automobile industry.

But this impressive milestone actually reflects a global slowdown in smartphone sales amid the worldwide COVID-19 pandemic. According to Canalys, the launch of Huawei smartphone in the second quarter of this year in Compared to the same period in 2019, it has decreased by five percent, and despite an 8 percent increase in supply in the Chinese domestic market, Huawei’s international sales have experienced a 27 percent decrease. At the same time Samsung as the top smartphone seller in The first quarter of 2020 experienced a 30% drop globally during the second quarter of this year, and this drop has made Huawei ahead of the Korean company. Of course, now with the tightening of US sanctions and the restriction of chip export to the Chinese company, it is not possible to speak with confidence about the ability of this company to deal with the pressures and maintain the status quo.

Overall, despite Huawei’s temporary success, the company’s revenue growth rate has decreased. As the 9.9% growth of Huawei’s income in the first nine months of this year was much lower compared to the 24.4% increase in the same period last year. In addition, the profit margin of the company was slightly higher last year with 8.7% compared to this year. Hence, while Huawei has been relatively successful in its trade battle with the US government so far, it seems that it will face more challenges in the coming months and years.

The Trump administration, on various pretexts, including the security risks of products Apple was the main motivation of Trump and the business managers of his administration. At the same time, the US government is probably trying to prevent Huawei from dominating the 5G technology market so that companies like Huawei do not follow the same path as large American companies in the early decades of the Internet and do not become the undisputed ruler of information technology in the 21st century. /p>

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