Huawei’s Q3 results report is now available. Its figures suggest that the company has not faced any issue following the ban by the US government. Combined revenues for the Q1-Q3 period came to about $86 billion which has in fact grown by 24.4 % from the same time last year. With regards to smartphones, Huawei has shipped over 185 million units in the first three quarters of 2019 which again sees an increase of 26% over the last year.
While the company has not released specific shipment details for the third quarter of 2019, it is expected from other statistics that it should fall somewhere around 67 million units. When compared to the sales of 59 million units from the second quarter, we see a 13.5% rise here as well. Huawei has certainly managed to make a great profit in the third quarter of 2019 despite the US market not being open for them.
The report also contains details about 5G network expansion that Huawei is working on. It has partnered with over 60 commercial contracts with carriers across the globe. Over 220 Fortune 500 companies and 700 cities around the world have partnered with Huawei for its Horizon Digital Platform.
Trouble Between Huawei And The US
The latest phones by Huawei have a slightly different OS now. You will not find any pre-loaded default Google apps. There would be no Google Maps, Gmail, or even the Google Play Store. Instead, you can use the Huawei Mobile Services where you can look around the Huawei’s AppGallery app store, their web browser, and the photo gallery. With Huawei being blacklisted by the US over spy charges, Google can no longer offer its services to Huawei which has resulted in this. Since basic Google services are used by most users regardless of the device they use, many thought that this would hurt Huawei quite a lot financially. However, the company have only seen an increase in sales and shipments.
Huawei’s Q3 Report and Sales
After the release of Huawei’s Q3 earnings report, we see that the company has only grown in terms of sales. This is an achievement keeping in mind the ongoing trade war between the US and China. Huawei’s latest Mate 30 smartphone has been wildly popular and this has shown in the Q3 sales report. Since the current results only calculate the figures till September, later this year, we will know the true figures. The ways things are going now, Huawei could have explosive results.
A few months back, Huawei released a statement which said, “While the impact of the US trade restrictions will be less than initially feared, the curbs could push its smartphone unit’s revenue lower by about $10 billion this year.” This is the first time Huawei has been placed on the US Entity List and has been such growing results. Net profit margins of the company in H1 is at 8.7%. The rapid sales in Q3 came as a surprise. Especially keeping in mind that the company didn’t do that well in Q1 and Q2 of 2019.