comscore Huawei reports slow growth due to US ban and lack of access | BGR India
News

Huawei reports slow growth due to US ban and pressure on consumer business

Huawei has finally started seeing its business slow down due to lack of access to American technologies. The company has not revealed impact of Coronavirus yet.

  • Published: April 1, 2020 5:32 PM IST
Huawei Stock Photo MWC Huawei Ban

Huawei is finally facing the heat of trade ban imposed by the US Department of Commerce. The Chinese telecommunications giant reported slowing profit growth in 2019 due to the ban. The company revealed the details while announcing revenue for last year. Huawei reported total revenue of RMB 858.8 billion, a year-on-year increase of 19.1 percent. The net profit came in at RMB 62.7 billion, which was a gain of 5.65 percent from last year. Also Read - Huawei EMUI 10.1 announced with MeeTime, Celia assistant and multi-screen collaboration: Check out roll out and compatible devices

Huawei reported profit growth of 25 percent in 2018 and 28 percent in 2017. The company also did not detail the impact from Coronavirus outbreak on its business. In an interview with CNBC, Eric Xu, rotating chairman of Huawei, told the company missed its own targets. The Chinese technology giant had projected revenue of RMB 858.8 billion at the start of thus year. While it has ended with that projection, it could have been better. Also Read - Huawei P40 Pro is the new leader in DxOMark rankings for main camera and selfie camera but does that matter

The company was reportedly planning to increase its projected revenue for 2019 higher in April. However, it dropped the plan due to tensions due to US-China trade war. The company was put on the US Entity List in May last year. This restricted the company from working with American technology companies. Xu blamed the blacklisting for missing the revenue target by around $12 billion. Also Read - Huawei Smart TV to launch on April 8; will bring big pop-up module: Check details

“We didn’t meet our revised targets, which was the $135 billion mark. We were short by $12 billion. This was the results of the US sanctions,” Xu told CNBC on Tuesday. “We had to deal with the challenges around the supply continuity and we had to address the supply challenges in the short term, so as to supply certain products to our customers. And we also had to increase our R&D (research and development) investment,” Xu added.

Since May last year, Huawei has faced a tough year and has seen blowback in other countries as well. The company has been repeatedly scrutinized in markets like Europe and the UK. It has also lost critical business in some of the key markets. However, the weakness seems to have come in the mobile business. Huawei was on track to become the leading smartphone maker in the world. However, the lack of Google services on its mobile devices, restricted the company from expanding its market share. “It is the consumer business of Huawei that was hurt the most,” Xu said.

For the latest tech news across the world, latest PC and Mobile games, tips & tricks, top-notch gadget reviews of most exciting releases follow BGR India’s Facebook, Twitter, subscribe our YouTube Channel.
  • Published Date: April 1, 2020 5:32 PM IST


You Might be Interested

Huawei P40
EMUI 10.1 Based on Android v10
HiSilicon Kirin 990 5G with Octa core (2.86 GHz, Dual core, Cortex A76 + 2.36 GHz, Dual core, Cortex A76 + 1.95 GHz, Quad core, Cortex A55)
32 MP f/2.0 Primary Camera and on the rear, there's an 50MP + 16MP + 8MP camera
Huawei P40 Pro Plus
Android v10 (Q)
Octa core (2.86 GHz, Dual core, Cortex A76 + 2.36 GHz, Dual core, Cortex A76 + 1.95 GHz, Quad core, Cortex A55)
50 MP + 40 MP + 8 MP + 8 MP
Huawei P40 Pro
Android v10 (Q)
Octa core (2.86 GHz, Dual core, Cortex A76 + 2.36 GHz, Dual core, Cortex A76 + 1.95 GHz, Quad core, Cortex A55) processor
50MP + 40MP + 12MP

new arrivals in india

Samsung Galaxy M51
Samsung Galaxy M51

24,999

Poco M2
Poco M2

10,999

Oppo F17 Pro
Oppo F17 Pro

22,990

Realme 7 Pro
Realme 7 Pro

19,999

Realme 7
Realme 7

14,999

Xiaomi Redmi 9A
Xiaomi Redmi 9A

6,799

Vivo Y20
Vivo Y20

12,990

Xiaomi Redmi 9
Xiaomi Redmi 9

8,999

Nokia 5.3
Nokia 5.3

13,999

Motorola Moto G9
Motorola Moto G9

11,499

Realme C15
Realme C15

9,999

Realme C12
Realme C12

8,999

Samsung Galaxy Note 20
Samsung Galaxy Note 20

77,999

Xiaomi Redmi 9 Prime
Xiaomi Redmi 9 Prime

9,999

Oppo Reno4 Pro
Oppo Reno4 Pro

34,990

Samsung Galaxy M01 Core
Samsung Galaxy M01 Core

5,499

Realme 6i
Realme 6i

12,999

Asus Rog Phone 3
Asus Rog Phone 3

49,999

OnePlus Nord
OnePlus Nord

24,999

Infinix Smart 4 Plus
Infinix Smart 4 Plus

7,999

Xiaomi Redmi Note 9
Xiaomi Redmi Note 9

11,999

Samsung Galaxy M01s
Samsung Galaxy M01s

9,999

Vivo X50 Pro 5G
Vivo X50 Pro 5G

49,990

Vivo X50 5G
Vivo X50 5G

34,990

Realme C11
Realme C11

7,499

Poco M2 Pro
Poco M2 Pro

13,999

Realme X3
Realme X3

24,999

Realme X3 SuperZoom
Realme X3 SuperZoom

27,999

Tecno Spark Power 2
Tecno Spark Power 2

9,999

Oppo A12
Oppo A12

9,990

Oppo A52
Oppo A52

16,990

Samsung Galaxy A21s
Samsung Galaxy A21s

15,999

Oppo Find X2
Oppo Find X2

64,990

Motorola One Fusion Plus
Motorola One Fusion Plus

17,499

Samsung Galaxy A31
Samsung Galaxy A31

20,999

Samsung Galaxy M01
Samsung Galaxy M01

8,999

Samsung Galaxy M11
Samsung Galaxy M11

10,999

Infinix Hot 9 Pro
Infinix Hot 9 Pro

9,999

LG Velvet
LG Velvet

Price Not Available

Xiaomi Mi Note 10 Lite
Xiaomi Mi Note 10 Lite

Price Not Available

Apple iPhone SE 2020
Apple iPhone SE 2020

42,500

Honor 30 Pro
Honor 30 Pro

Price Not Available

Honor 30
Honor 30

Price Not Available

OnePlus 8
OnePlus 8

44,999

OnePlus 8 Pro
OnePlus 8 Pro

54,999

Xiaomi Redmi Note 9 Pro
Xiaomi Redmi Note 9 Pro

13,999

Motorola Moto E4
Motorola Moto E4

8,999

Samsung Galaxy On Max
Samsung Galaxy On Max

9,775

nubia N2
nubia N2

15,999

Karbonn K9 Kavach 4G
Karbonn K9 Kavach 4G

5,290

Motorola Moto C Plus
Motorola Moto C Plus

6,999

Best Sellers