Skip to content
Subscriber Only

Huawei Quarterly Sales Slump as Sanctions Hit Phone Business

  • Profit margin climbed after cost efficiencies, patent fees
  • It’s seeking growth in areas like EVs as smartphones slump
Customers exit a Huawei Technologies store in Beijing.

Customers exit a Huawei Technologies store in Beijing.

Source: Bloomberg

Updated on

Huawei Technologies Co.’s revenue shrank for a second straight quarter after U.S. sanctions devastated the embattled Chinese tech giant’s smartphone business.

Huawei reported a 17% decline in sales to 152.2 billion yuan ($23 billion) in the first three months of this year, the company said in a statement. That follows a 11% decline in revenue for the three months ended December. Its profit margin rose 3.8 percentage points to 11.1%, which translates into net income of 16.9 billion yuan, as the company trimmed costs and received a $600 million patent license fee.