Google restrictions have likely impacted Huawei’s performance too
Huawei has announced that its revenue growth has slowed considerably for the first quarter of 2020 following the coronavirus outbreak.
The coronavirus along with the Google ban enforced by the US on Huawei, has seen revenue grow just 1.4 per cent year-on-year to £20.8 billion in Q1 2020.
That number was 39 per cent year for the same three-month period last year, while net profit margin was only up 7.3 per cent, again lower than last year.
Huawei has said it is taking proactive measures to support its workers during the global pandemic, and confirms it has been to quickly launch many 5G and AI-powered medical applications.
Huawei vice president Victor Zhang has acknowledged the challenges faced.
“While our growth rate has slowed, this is a resilient performance in the face of both the Entity List and coronavirus.
“Huawei has worked round the clock with our customers – the telecoms operators – to ensure their networks remain reliable.
In then open letter Zhang thanks customers for sticking with Huawei, Huawei employees and also mentions the strategy in place, where Zhang confirms the vendor is still on course to invest more than £16 billion its R&D this year.
Last year Huawei shipped over 240 million smartphones globally to claim second place for overall market share.