Huawei's Erstwhile Revenue Trajectory Shows Reversal Amid US Sanctions

Huawei Technologies Co recorded its second straight quarter of higher revenue during the third quarter, reflecting signs of stabilization following years of U.S. embargo on sales of its telecom equipment.
Revenue at the Chinese telecom giant rose 6.5% to 144.2 billion yuan, or $20 billion, during the third quarter compared with a year ago, WSJ reported.
Also Read: US-China Tensions Boil As Taiwan's TSMC Also Joins Embargo After NVidia and AMD
Huawei's main business line selling telecommunications equipment grew, while a longtime decline in its consumer-device business had slowed.
The results marked a reversal from more than a year of dwindling revenue driven by plunging smartphone sales and restrictions on sales of its telecom equipment.
The U.S. embargo ruined the company's smartphone business, its primary revenue driver. It has also dented its business of selling telecom equipment.
Huawei developed an array of new business lines less dependent on chips like cloud-computing services, autonomous-driving components, smartphone software, and consumer gadgets like smartwatches and tablets, the report added. However, the new businesses failed to offset the steep drop in smartphone sales.
Huawei also invested heavily in China's fast-growing chip-manufacturing industry via its investment arm Hubble Technology Investment Co.
The U.S. has long viewed Huawei as a national-security threat and has said Beijing can use Huawei equipment to spy, which the company denied.
Huawei sold some businesses, including its Honor brand of budget smartphones, to cope with the restrictions on its access to chips.
Huawei aimed to relaunch 5G phones by 2022 to overcome the U.S. sanctions and win back market share.
Huawei reworked its phones to use less advanced chips made by Chinese companies that will enable 5G.
In September, Huawei launched its latest flagship smartphone with satellite communications capabilities, ahead of Apple Inc AAPL and Samsung Electronics Co, Ltd SSNLF.
Price Action: AAPL shares closed lower by 3.05% at $144.80 on Thursday.

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