Huawei regularly releases new smartphones despite the tough restrictions from the United States, whose government is sharply opposed to the Chinese company using American-made components or American technology.
Samsung has joined the companies that are ready to save Huawei
Now, it looks like Huawei’s new product launches may even get more frequent; given the fact that more suppliers got licenses to continue working with the Chinese giant. At first, it was AMD and Intel, but today we learned that one of Huawei’s main opponents, Samsung, also received the green light from the US government to supply components.
According to Reuters, Samsung Display, a division of the South Korean giant Samsung, has got a licence to continue supplying certain display panel products to Huawei Technologies.
However, despite the US government’s permission; it is not yet clear if Samsung Display will be able to ship its OLED panels to Huawei; as other firms in the supply chain will also need to obtain US licenses. For example, recently LG Display, a rival to Samsung Display, said it also needs to obtain a license in order to continue its relationship with Huawei along with other companies.
All large companies that did business with Huawei prior to the tightening of US restrictions have applied for the necessary licenses to continue doing business with the Chinese giant. Among them are Qualcomm, MediaTek, Sony, Samsung Electronics, SK Hynix and Kioxia.
Huawei’s revenue continues to rise despite uncertainties
In the face of numerous bans from the United States, the fate of some of Huawei’s businesses have been hanging in the balance. However, the company remains resolute and we can see this from its technological advancement and financial results. Huawei’s revenue continues to look good despite the uncertainties surrounding its smartphone business – one of its major businesses. Recently, the Chinese manufacturer announced its financial performance for the first three quarters of 2020.
According to Huawei, during this period, its revenue hit 671.3 billion yuan (over $100 billion). This is an increase of 9.9% over the same period last year. On the profit end, the company’s net profit margin is about 8.0%. Throughout the first three quarters of 2020, Huawei’s business results basically met expectations. This is quite interesting because many analysts did not expect Huawei to meet its expectations.
Apart from the ban and pressure from the United States; the COVID-19 pandemic is also putting Huawei’s operations under intense pressure. Presently, the company’s production and operations are facing significant challenges. However, the Chinese manufacturer continues to forge ahead despite the challenges. Huawei says that it has no choice but to fulfill its obligations to customers and suppliers.