Huawei 1Q revenue growth slows to 1.4% from 39% amid US ban, coronavirus

The result is much lower than expectation. The company generated CNY 182.2 billion ($25.72 billion) in revenue with 1.4% growth. A year ago the company showed a staggering 39% growth.

However, the company’s report also said the results of 1Q 2020 were “in line with expectations,” which means Huawei wasn’t expecting the same sort of growth this year.

The profit margin also shrunk slightly, coming in at 7.3%, not much different from 8% profit margin of last year.

The company has been suffering from the double whammy of COVID-19 and bans from the US, which are major reasons for the company seeing lower-than-expected revenue and profits.

In May, the US placed Huawei on a blacklist. The government cited security concerns, which caused it to limit sales of US goods to Huawei. That, along with the strain COVID-19 is placing on the world’s economy, is hurting most companies.