Huawei has shared its Q3 revenue numbers, and it makes for interesting reading, with revenue growing to $86bn (£67bn) in the first three quarters of 2019. And the profit margin has also held steady at 8.7%, with sales rising 27% year-on-year.
These numbers indicate that Huawei seems to be weathering the storm, and is seeing financial success, even though countries are banning the 5G equipment supplier. The company is seeing a steady growth in sales, and is also bagging new contracts for its 5G technology, and countries like Germany and the UK appear to still be open to the company. However, selling smartphones without Google apps has posed some challenges.
The worst may yet be ahead
While it seems to all be going well for Huawei, analysts believe that the fourth quarter of this year will pose more problems. Apple and Samsung will provide tough competition, as Huawei’s phones take a backseat with no Google support. And Lv Junkuan, an analyst at Gartner, claims that “the worst is yet to come for Huawei”.
As smartphone sales make up the majority of Huawei’s revenue, the US sanctions, and overall consumer doubt surrounding the company, could severely impact unit sales.
Jia Mo, analyst at market research firm Canalys, said that “Huawei still faces risks”, and went on to say that, “The Mate 30 series is not being received well overseas, and we’ve heard that vendors are not willing to buy handsets because of the lack of Google support.”
Furthermore, with Apple’s iPhone 11 being more competitively priced than some previous models, Huawei is being pushed in that respect, too. And while the company has signed 60 commercial contracts with global carriers for 5G systems, this may not be enough to bolster Huawei’s Q4 results.