Huawei Technologies Co. Revenue growing for the sixth quarter in a row due to the absorption of Apple’s share in the Chinese smartphone market. In the second quarter of this year, the Chinese telecommunications giant’s revenue amounted to 239 billion yuan ($33.6 billion), up 33.7% compared to the same period last year.
Huawei’s net profit during this time is expected to be 35.5 billion yuan, down 18.6% from a year earlier. But a year ago the company recorded a one-time profit from the sale of assets. Huawei sold its subsidiary Honor Device Co. to the consortium. in 2020 and part of its server business in 2021, and payments for these transactions are received in installments.
Huawei’s smartphone shipments to the home market grew 50% last quarter, while Apple’s share declined, according to IDC. At the same time, not only Huawei, but also other local manufacturers such as Vivo and Xiaomi, managed to bypass Apple, which in the ranking at the end of the quarter took only sixth place among the largest smartphone suppliers. In the second quarter, Apple smartphone sales in China fell 6.5%, which was below Wall Street analysts’ forecasts.
The continued growth of Huawei’s mobile business will largely depend on the success of its flagship Mate 70 smartphones, which the manufacturer will introduce later this year. Last year’s Mate 60 smartphones made a lot of noise because their hardware was based on a microprocessor created in China, manufactured using the 7 nm process technology. The developers were able to create this chip despite numerous US sanctions against Huawei and many other Chinese technology enterprises.