During the first three quarters of 2020, Huawei's overall revenue increased by 9.9% year-over-year, reaching CNY 671 billion – but the tough times have just begun.
On October 23, 2020, the Shenzhen-based ICT provider Huawei announced its business result for the third quarter of 2020. The revenue generated in 3Q 2020 amounted to CNY 217 billion, with an increase of 4% year-over-year, which was not that encouraging compared to the last quarter's 23% growth.
As the company admitted, its business is being significantly challenged by the global supply chain pressures on its smartphone business. Besides, turbulent external international relations also impede the company's global carrier and governmental service segments.
Since the beginning of 2020, the company has been seeking business transformations to fight against an anticipated smartphone sales decline. One direction of the transformation is the Huawei cloud service, especially for enterprise services. Another essential move is to stick to the consumer business segment by developing PCs, tablets, TVs and other consumer electronics categories.