Huawei's revenue growth slowed down amid the Corona pandemic
Huawei's revenue growth slowed down amid the Corona pandemic

The Chinese telecom giant Huawei announced today, Tuesday, a significant decline in its returns, with a growth rate of only 1.4% in the first quarter, when the Covid-19 pandemic and efforts to contain it closed the Chinese economy.

The numbers released by unlisted Huawei are among the first financial statements of major Chinese enterprises to provide a glimpse into the scale of the consequences of the epidemic on the business sector, since it appeared in December before it spread globally.

January-March revenue was 182.2 billion yuan ($ 25.8 billion), an increase of 1.4 percent year on year, compared to a growth of 39 percent during the same period last year, according to a company statement.

The net profit margin in the first quarter was 7.3%, compared to 8% last year.

Huawei, the world's largest provider of networking and communications equipment, and the second largest smartphone manufacturer after Samsung, did not consider the slow growth due to the emerging Corona virus, which froze consumer spending and global supply chains.

However, she said, the company and its "network of suppliers are working together to meet the severe challenges of production and appeal."

Huawei added that the business "continues as usual", but has provided few details.

The numbers indicate that the epidemic is a bigger challenge, at least in the short term, than the US campaign to isolate the company globally.

Huawei said last month that it posted strong growth in 2019, while revenue increased by 19.1% despite U.S. efforts to isolate it.

The United States suspects that "Huawei" equipment contains security holes that allow China to spy on global communications.

But the company repeatedly denied the accusation, and said that Washington had provided no evidence for this claim.
Regarding the timeframes for its launch, the analyst claims that the new Huawei phone can be launched next August.

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