By
Godfrey Benjamin
April 11th, 2024
Huawei noted that it dominated 8% of the Chinese smartphone market during the third quarter, 30% down from what the company recorded the same time last year.
Huawei Technologies Co Ltd, a Shenzhen-based multinational technology company that deals with consumer electronics, reported its Q3 earnings results. According to news outlet Reuters, the company recorded a revenue of 135.4 billion yuan. The figure represented a spike of approximately 38% from the previous quarters.
Notably, the rotating chairman Guo Ping said that the company’s Q3 revenue was in line with the forecast. However, the technology company is facing supply chain challenges following hostility from the United States government.
Notably, the company’s tribulations began when former US President Donald J Trump laid out restrictions over chip supply. The United States government is citing security issues with the Chinese tech company.
More so, the U.S. Senate voted unanimously on Thursday to restrict Huawei and ZTE Corp from access to the United States technology, particularly in telecommunications.
“Chinese state-directed companies like Huawei and ZTE are known national security threats and have no place in our telecommunications network,” Republican Senator Marco Rubio said.
The newly drafted law dubbed The Secure Equipment Act has now been handed over to President Joe Biden awaiting his signing.
During the third quarter, Huawei noted that it dominated 8% of the Chinese smartphone market down from 30% recorded at the same time last year.
The company is struggling to keep up with the rising competition emanating from the west, including Apple, which is a major smartphone company in China. As a private company, Huawei is much more flexible to make new decisions that will favor its market outcome. Contrary to multinational public companies that are heavily regulated by different lawmakers.
Huawei in Q3 and Its Future Market Outlook
Huawei has been fighting to stay afloat since the sanctions imposed by the United States government. In a bid to see its future prosperity, Huawei was compelled to spin off one of its subsidiaries Honor. Notably, Honor sold 96 percent more phones in the third quarter compared to 15 percent of the Chinese smartphone market.
Reportedly, Huawei is now seeking to develop other avenues to generate revenue in the coming quarters. Moreover, the industry is significantly changing and consumers are getting exposed to other products from other companies.
Among the fields that the company is seeking to venture into include the cloud computing sector and the smart electric vehicle industry. Notably, the electric vehicle industry is projected to significantly grow in the coming decade as the whole world prepares to adopt climate-friendly technology.
Huawei received a huge boost after chief financial officer Meng Wanzhou, and the daughter of its founder Ren Zhengfei returned to work in the company.
