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Huawei’s Q120 Revenue Up 1.4% Y/Y in Q120
April 26, 2020
Huawei’s preliminary 1Q results had revenue of $25.7b, up 1.4% Y/Y as both the COVID-19 virus and the US sanctions limited Huawei’s growth. Net margin declined from 8% last year to 7.3% this year. The US ban on component sales to Huawei, which began in May of last year, has made it extremely difficult for Huawei to sell smartphones outside of China. The company’s smartphone business segment reportedly grew slightly Y/Y. In 2019, Huawei reported 19.1% Y/Y growth to a record of $121b, with 59% of total sales coming from China.
In response to the US proposed ban on curbs on access to U.S. technologies for its suppliers, a Huawei spokesperson said on Tuesday, "Even if the U.S. does take such measures, we could still buy chips from Samsung in South Korea, MediaTek in Taiwan and Spreadtrum within China's mainland. This is common industry practice," … if we cannot make these chips ourselves, I believe that many chip companies in China will grow, and we could then make our products using chips from these companies, as well as those from South Korea, Japan, Taiwan and Europe." Huawei currently relies on Taiwan Semiconductor Manufacturing Co., the world's biggest contract chipmaker, to produce all kinds of high-end chips -- from mobile processors, networking processors and 5G modems to other customized chips for its smartphones, servers, telecom equipment and most of its hardware lineup.
If the U.S. does enact new export rules, Samsung, MediaTek and other foreign chip suppliers, which use a lot of American technologies and tools in chip development, would likely have to comply with the regulations, casting doubt on how Huawei would be able to purchase from them.
April 26, 2020
Huawei’s preliminary 1Q results had revenue of $25.7b, up 1.4% Y/Y as both the COVID-19 virus and the US sanctions limited Huawei’s growth. Net margin declined from 8% last year to 7.3% this year. The US ban on component sales to Huawei, which began in May of last year, has made it extremely difficult for Huawei to sell smartphones outside of China. The company’s smartphone business segment reportedly grew slightly Y/Y. In 2019, Huawei reported 19.1% Y/Y growth to a record of $121b, with 59% of total sales coming from China.
In response to the US proposed ban on curbs on access to U.S. technologies for its suppliers, a Huawei spokesperson said on Tuesday, "Even if the U.S. does take such measures, we could still buy chips from Samsung in South Korea, MediaTek in Taiwan and Spreadtrum within China's mainland. This is common industry practice," … if we cannot make these chips ourselves, I believe that many chip companies in China will grow, and we could then make our products using chips from these companies, as well as those from South Korea, Japan, Taiwan and Europe." Huawei currently relies on Taiwan Semiconductor Manufacturing Co., the world's biggest contract chipmaker, to produce all kinds of high-end chips -- from mobile processors, networking processors and 5G modems to other customized chips for its smartphones, servers, telecom equipment and most of its hardware lineup.
If the U.S. does enact new export rules, Samsung, MediaTek and other foreign chip suppliers, which use a lot of American technologies and tools in chip development, would likely have to comply with the regulations, casting doubt on how Huawei would be able to purchase from them.
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