Today Huawei announced its business results for the first quarter of 2020. In the Q1 of 2020, Huawei generated CNY182.2 billion in revenue, an increase of 1.4% year-on-year growth. The net profit margin in Q1 is 7.3%.
In Q1 2019, Huawei recorded a 39% year-on-year quarterly increase and an 8% net profit margin increase. The difference between 2020 and 2019 shows a slight decline in growth and net profit.
Unlike last year, Huawei hasn’t published its first-quarter report for individual division, which may come later.
“Huawei is doing everything in its capabilities to help carriers ensure stable and secure network operations. Together, we are working to meet the network demand created by social distancing as people switch to telecommuting, distance education, and e-commerce for daily necessities.” Wrote Huawei.
Due to the COVID-19 Pandemic, Huawei has halted some of its production to ensure the safety of its employees. Huawei said, its supplier network are working together to address the tough challenges facing production and resume operations.
Last year, Huawei was placed in the U.S. Entity List, which also prevents the company from purchasing U.S. technologies. Following this prohibition, Huawei has diversified its supply chain sources including key chipset and other required components.
Moreover, the halt in Google services has surely impacted Huawei’s smartphone business. However, the company is working to create new partnerships around the globe to bring more apps on its AppGallery platform.