Huawei: stale mate

Huawei: stale mate

Huawei has proved surprising resilient up until now. The privately held Chinese telecoms giant overtook Samsung as the top smartphone maker by market share in the second quarter and continued to grow in the third quarter, in spite of escalating sanctions. But the good times cannot last. This may be the last hurrah.

Growth is slow. Revenues rose 3.7 per cent on the previous year. Compared with a 27 per cent year-on -year increase in 2019, the figure are troubling. More worrying news: Huawei has suggested that its latest flagship smartphone, Mate 40, will be the last of its high-end line-up.

Chips crucial for Huawei’s smartphone models are expected to run out early next year. A panicked stockpiling of chips before bans took effect last month will have contributed to a decline in net margins to 8 per cent in the first nine months.