Huawei says third quarter revenue up 26.7 per cent despite US trade ban as smartphone sales surge

Huawei Technologies, the world’s largest telecoms equipment vendor and China’s top smartphone brand, said its third quarter revenue grew 26.7 per cent year on year to 209.5 billion yuan (US$29.6 billion) despite a ban imposed in May that prevented it from purchasing US components and software.

The company generated revenue of 610.8 billion yuan in the first nine months of 2019, an increase of 24.4 per cent year on year, Huawei said in an emailed press release on Wednesday. Net profit margin stood at 8.7 per cent, unchanged from the first six months, according to the company.

Huawei’s 24.4 per cent revenue growth for the first nine months is faster than the 23.2 per cent year on year in the first half of 2019, but lags its 39 per cent year-on-year growth pace in the first quarter of this year.

The Shenzhen-based company, which focuses on ICT infrastructure and intelligent devices, said it achieved “stable” business operations during the first three quarters of the year, without breaking out separate revenue figures for its three key business segments of consumer, carrier and enterprise.

Huawei continues to grapple with the US trade ban despite Washington’s decision in August to grant it a further reprieve to buy major components from American tech companies.

The company was issued a temporary general licence on May 20 after the company and its 68 non-US affiliates were placed by Washington on a trade blacklist, called the Entity List, over national security concerns. The issuing of the licence was meant to minimise disruption to existing mobile services and mobile networks, including those operated by many US rural carriers that use Huawei equipment.