- 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.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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