Huawei Stabilizes Sales, as Profits Continue to Drop

Huawei managed to stop its revenue decline but its profitability continued to slide in the first three quarters of 2022. Revenue in the nine months dipped 2.2% to CNY445.8 billion ($61.8 billion), while its profit margin dropped to 6.1% from 10.2%.

The vendor didn’t disclose net profit or break down sales by division in its earnings release. Calculations, however, showed Q3 sales were up 6.5% from a year earlier to CNY144.2 million - it's first quarterly gain in two years.

The rotating chairman Eric Hu noted in the short statement that the fall in the device business continued to slow down, and its ICT infrastructure business maintained steady growth. “Overall performance was in line with forecast,“ added Hu.

The drop in margin comes two months after Huawei founder and CEO Ren Zhengfei called on employees to focus on improving profit, as he expects global consumption to decline. H1 revenue dropped 5.9 % to CNY301.6 billion.