April 16, 2024
  • Chinese language tech large Huawei reported third-quarter income figures on Friday that confirmed only a 1% year-over-year enhance within the third quarter, in accordance with CNBC calculations.
  • Based on Counterpoint Analysis, Huawei launched a brand new smartphone within the three-month interval ending in September, serving to the corporate enhance its gross sales in China whereas Apple suffered a decline in gross sales.
  • Huawei stated income within the first three quarters of the yr rose 2.4% to 456.6 billion yuan, the very best in that interval since 2020.

Guests line up in entrance of the Huawei flagship retailer on Nanjing East Street, one of many metropolis’s important industrial and vacationer districts, in Shanghai, China, September 30, 2023.

Bloomberg | Bloomberg | Getty Photographs

BEIJING – Chinese language tech large Huawei reported income figures Friday that confirmed only a 1% year-over-year enhance within the third quarter, in accordance with CNBC’s calculations.

That is regardless of the corporate launching a well-liked new smartphone on the finish of August and gross sales of its electrical automotive firm rising.

Huawei stated income within the first three quarters of the yr rose 2.4% year-on-year to 456.6 billion yuan ($62.33 billion), the very best in that interval since 2020. The US Sanctions towards the Chinese language telecom producer started in 2019.

Regardless of these limitations on Huawei’s entry to high-end expertise, critiques point out that the corporate’s new Mate 60 Professional smartphone presents obtain speeds corresponding to 5G because of a complicated semiconductor chip.

Huawei quietly launched the cellphone in China in late August and declined to disclose extra throughout a seasonal launch occasion in late September.

Based on Counterpoint Analysis, greater than 1.6 million Mate 60 collection units have been offered within the first six weeks of gross sales.

The analysis agency estimated that almost all, about 75%, of items offered have been Professional fashions – that’s about 1.2 million items offered.

Shanghai-based CINNO Analysis estimates Apple, which launched its iPhone 15 in September, is anticipated to promote 10 million items of the brand new cellphone in China this yr, for a complete of 45.5 million iPhone gross sales within the nation .

The US firm reported a ten% year-on-year decline in smartphone gross sales within the third quarter, whereas Huawei’s gross sales rose 37%, Counterpoint Analysis stated on Thursday.

Huawei has additionally established a presence in China’s fast-growing new power automobile market, which incorporates hybrid and battery-powered vehicles.

The corporate sells its working system and elements, corresponding to driver help techniques, to vehicle producers.

In December 2021, Huawei launched its personal automotive model Aito in collaboration with the producer Seres.

Based on a social media submit from Richard Yu, who heads Huawei’s auto and client enterprise, orders for Aito’s newest M7 topped 60,000 on October 16, nearly a month after its launch.

On Wednesday, Aito introduced that pre-orders for its upcoming M9 SUV had surpassed 15,000.

Huawei isn’t publicly traded and didn’t break down income by enterprise line in its newest replace.

The telecommunications large stated it booked partial beneficial properties from the sale of sure companies, however didn’t specify which of them.

Huawei stated its web revenue margin was 16% within the first three quarters of the yr. That’s up from a 15% revenue margin reported within the first half of the yr, when income rose 3.1% to 310.9 billion yuan.

Third-quarter income was 145.7 billion yuan, up 1% from 144.2 billion yuan in the identical interval final yr, CNBC calculations of Huawei figures confirmed.

Huawei continued its efforts to increase its patent licensing enterprise within the third quarter with offers with Xiaomi and Ericsson overlaying 5G connectivity.

The telecommunications large has rolled out 5G-based enterprise purposes in mining, ports and manufacturing, however Friday’s launch didn’t point out how a lot income, if any, the corporate generated within the third quarter.

Huawei additionally made headway in worldwide markets with the growth of its cloud enterprise to Saudi Arabia in September. The corporate introduced this week that it had opened a analysis lab in Finland to check well being and health wearables.

The US claims the Chinese language telecommunications large poses a nationwide safety danger resulting from alleged ties to the Chinese language Communist Social gathering and the nation’s army. Huawei has repeatedly denied the existence of such a danger.

—CNBC’s Arjun Kharpal contributed to this report.