Huawei Q3 Revenue Drops 38% Due to US Sanctions Impact

[Asia Economy Reporter Kim Hyemin] Chinese telecommunications equipment manufacturer Huawei's third-quarter sales fell nearly 40% year-on-year. This is due to the US government's intensified sanctions.

Huawei announced on the 29th that its cumulative sales from Q1 to Q3 reached 455.8 billion yuan (approximately 83.48 trillion KRW), with a net profit margin of 10.2%.

Although Huawei does not separately disclose quarterly results, based on Q1 and Q2 performance, Q3 sales are estimated at 135.4 billion yuan, a 38% sharp decline compared to the same period last year. This marks the fourth consecutive quarter of sales decline.

Guo Ping, Huawei's rotating chairman, stated in a press release that the business performance generally met the company's expectations, noting that the consumer business division, including smartphones, was relatively heavily impacted.

The decline in performance appears to be due to US government sanctions. The US government began sanctions targeting Huawei's supply chain paralysis during former President Donald Trump's administration in 2019 and intensified the sanctions starting September last year.

As a result, Huawei has been unable to procure key semiconductor components, leading to reduced product output and significant contraction in its core businesses of telecommunications equipment and smartphones.

This content was produced with the assistance of AI translation services.