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Huawei’s revenue growth is rapidly shrinking, and may stop growing in the fourth quarter

The results announced by Huawei show that the revenue in the first three quarters of this year increased by 9.9% year-on-year, and the net profit margin was 8.0%. It still achieved performance growth despite many factors, proving that this company has a strong toughness.

Huawei’s revenue growth is rapidly shrinking, and may stop growing in the fourth quarter

From the results announced by Huawei, we can see that in the first half of 2019, the first half of 2019, the first half of this year, and the first three quarters of this year, the year-on-year growth rates of revenue were 23.2%, 19.1%, 13.1%, and 9.1%. 9%, it can be seen that its revenue growth rate has been declining rapidly since the first half of last year.

Carefully analyze Huawei’s performance in the third quarter of this year and the third quarter of last year. According to Huawei’s announced revenue in the first half and first three quarters of 2019, it can be calculated that its revenue in the third quarter of 2019 was 209.5 billion yuan; The revenue was 217.3 billion yuan, and the revenue growth rate in the third quarter of this year was only 3.7%.

It can be seen that the year-on-year growth rate of Huawei’s revenue in the third quarter of this year has shrunk even more sharply. According to this trend, it may be difficult to achieve revenue growth in the fourth quarter.

Huawei’s revenue growth is rapidly shrinking, and may stop growing in the fourth quarter

The result is that several of Huawei’s businesses have been affected by chip supply problems. The first is Huawei’s largest business – the mobile phone business has been affected the most. In the fourth quarter of last year, Google stopped authorizing GMS services to Huawei. On September 14 this year, SMC could no longer manufacture chips for Huawei, and chip companies such as MediaTek could not supply chips to Huawei. As a result, Huawei will have to rely on its existing chip inventory to maintain the operation of its mobile phone business.

Due to these factors, Huawei’s mobile phone sales in overseas markets have continued to shrink since the third quarter of last year; in the fourth quarter of this year, due to chip supply issues, Huawei’s mobile phone sales in the domestic market may also shrink.

Huawei’s second largest business is the communications equipment business. Affected by well-known factors, many European countries have announced that they will not use Huawei’s 5G equipment, which directly leads to Huawei’s only one 5G equipment order since February this year. The equipment business mainly relies on the domestic market.

At present, the communication equipment business can maintain a good operation relying on the huge domestic market. At present, 600,000 5G base stations have been built, accounting for more than half of the world’s 5G base stations. Huawei has won more than half of the domestic 5G equipment market. The domestic 5G base station construction has completed the plan for this year ahead of schedule, and the domestic market may not be able to bring more revenue to Huawei in the fourth quarter.

Mobile phone business and communication equipment business account for more than 90% of its revenue. Based on the above, these two businesses may face huge resistance in the fourth quarter of this year, and from the third quarter, its revenue growth rate has shrunk to 3.3%. .7%, the cessation of revenue growth in the fourth quarter will be a high probability event.

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