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Huawei’s Profit Dives 67% After U.S. Sanctions Wallop Phone Arm

  • Chinese giant’s sales have now slid for six straight quarters
  • Huawei is spending heavily on R&D to develop own chips
Inside the MWC Shanghai Exhibition
Photographer: Qilai Shen/Bloomberg

Huawei Technologies Co. profit fell about 67% in the first quarter as the Chinese telecom-equipment giant continued to battle crippling U.S. trade and investment sanctions.

Revenue declined 14% to 131 billion yuan ($19.8 billion) in the three months through March, the closely held company said Thursday in a statement. Net profit margin narrowed to 4.3%, which translates to 5.6 billion yuan in net income. That compares with a margin of 11.1% and net income of 16.9 billion yuan a year earlier.