Huawei experienced a slow growth in the first quarter of the year though the company labeled the performance as “resilient” in the light of pressure from the United states as well as the current state of the coronavirus pandemic.
According to the company, its revenue in the Q1 of the year rose by almost 1% to CN¥ 182.2 billion ($25.72 billion) compared to a growth posted the previous year. This brings the company’s net profit margin over the period to be narrowed to 7.3% from 8% a year ago.
The company which still maintains its position as the third largest smartphone maker in the world didn’t disclose it’s net profit. “The growth rate has slowed, but this is also a resilient performance in the face of both the entity list and the coronavirus we are facing at this moment,” Vice President Victor Zhang said in a statement on today.
Huawei got banned last year by the US government over national security concerns as well as restricting the company from working with any US-Based companies all which had affected the annual profit growth of the company in three years.
About impact from the coronavirus pandemic, Zhang said it was difficult to gauge what that would be in the short or long term, as he presented the results from London rather than Huawei’s Shenzen base to mark 20 years of business in Europe.
Also, Huawei didn’t make reports on how many handsets it shipped in the first quarter and Zhang shrugged off criticism for the so-called “mask diplomacy” stating there were no ulterior motives behind its donation of millions of protective masks to countries across Europe amind the COVID-19 pandemic.
Huawei have been criticized for its sudden friendliness to Europe as a way to win contracts after EU had restricted the company’s 5G network roll-out to address cybersecurity risks but Huawei had denied this and claimed it’s equipment poses no threat to national security or cybersecurity issues.
“Definitely we will support some countries where there is a lack of PPE (Personal Protective Equipment), it is not because of Huawei’s business, it’s because of corporate social responsibility,” he said. The company had probably braced itself for the massive blow of the US-China trade war with Huawei being at the epicenter of the battle with no sign of the world economy planning to slow down its ban on the Chinese giant telecom company.
Washington is preparing new measures that would curb the supply of chips to Huawei, sources have said. But the company’s vice president Zhang said new restrictions would not make economic sense.
“Huawei wants to work with all the companies, all the partners and all the suppliers, which includes American companies,” he added.
Earlier this year, the company released the P40 series which despite being an interesting smartphone had no Google Play service which is essential for most people that uses Android devices and with that, many people are opting for Huawei’s competitors such as Samsung Galaxy S20 series or its own Chinese rival, Xiaomi’s devices and all that had caused a massive blow to the company’s revenue and sales potentials over time.