It seems that Huawei is taking full advantage of sanctions imposed on the Chinese controversial telecom company by the United States. It is hard to tell what was guiding the tech giant’s executives when they had publicly announced that sanctions did not interfere with Huawei’s activity but instead supported its steady development and revenue growth.
Meanwhile, Huawei’s third-quarter report contradicts the ambitious comments of its management. Thus, Huawei smartphone sales plunged by a record 23% year on year in the third quarter of 2020, hitting an all-time low. Such a dramatic drop in sales came due to sanctions imposed by the US government. Despite cheerful statements made by Huawei's executives, the US succeeded in punishing the telecom behemoth for stealing technologies and collecting personal data of users around the world in order to serve the interests of Beijing. At the same time, experts pointed out that the smartphone market was not somehow affected. Therefore, the company’s losses were triggered not by the lack of interest in its products but by an evident consumer reaction to the US sanctions.
If nothing changes, the only thing China’s tech giant will be left to do is to focus primarily on the domestic market. In order to keep Huawei within the Chinese market, Washington urges its international partners to use equipment designed by other manufacturers.
