Huawei appears to be weathering US sanctions after posting steady growth in sales and in new contracts for its 5G mobile technology, but the Chinese telecoms group still faces the challenge of selling smartphones without Google apps, reported the Financial Times.
The company said on Wednesday its revenues had grown to RMB 610.8 billion ($86 billion) in the first three quarters of this year, while its profit margin held steady at 8.7%. In the third quarter, sales rose 27% year-on-year.
But analysts say the company faces the challenge of a tough fourth quarter, with stiff competition from Apple in its smartphone division, especially as Huawei’s own flagship phones have been denied access to Google’s suite of apps by US sanctions.
“The worst is yet to come for Huawei,” said Lu Junkuan, an analyst at Gartner, adding that the real test would be when the Mate 30 smartphone series went on sale internationally.