Huawei Technologies’ revenue fell 38% in the third quarter compared to the same period a year earlier. The reasons are clear: US sanctions have hampered production, and new areas of potential growth for the company are under development.
For the first three quarters, Huawei’s revenue was 455.8 billion yuan ($ 71.32 billion); which is almost a third lower than in the same period last year. The overall profitability indicator reached 10.2%. According to Reuters, in the third quarter alone, the company’s revenue amounted to 135.4 billion yuan ($ 21.16 billion). According to the estimates of the company’s management, the financial indicators are in line with the forecasts.
The company was blacklisted by the United States in 2019 – access to critical American technologies was cut off. As a result, Huawei has lost the ability to purchase components for equipment from third-party suppliers, as well as develop its own. The sanctions hit the company’s smartphone production hard. According to September estimates, the division’s revenues will decrease by $ 30-40 billion in the current year.
According to Counterpoint Research, for the reporting quarter, the company took only 8% of the Chinese smartphone market; compared with 30% a year earlier – then it was the market leader. On the other hand, Honor, the independent sub-brand of Huawei last November, sold 96% more smartphones in the same Q3 than a year earlier and captured 15% of the Chinese market. Huawei is now striving to create new revenue streams beyond smartphones and telecommunications equipment. The company is developing cloud services and smart transport technologies. And the management understands that new directions will begin to generate income only after some time.
Gizchina News of the week
Huawei has published a list of smartphones that will receive the update to EMUI 12
While Huawei is moving its devices in China to the proprietary Harmony OS, users from other regions still have to settle for Android with the EMUI shell. It looks like the company is not yet ready to move away from this practice. Huawei today released the official list of smartphones that will receive EMUI 12.
The smartphones will start receiving the update from the first half of next year. Huawei has not announced which version of Android the EMUI 12 will be based on, however, according to the recently released Nova 9 smartphone, it is safe to say that it will be Android 11. The list of Huawei smartphones that will receive the latest software is shown in the image.
As with HarmonyOS 2.0, in EMUI 12, Huawei places a lot of emphasis on building an advanced ecosystem of branded products; making it easy to interact and transfer data between different devices such as smartphones, laptops, wearable electronics, smart home devices and more. In addition, EMUI 12 will bring a number of user interface changes; including a change in the style and functionality of notifications.
