Logo of Phnom Penh Post newspaper Phnom Penh Post - Huawei eyes China revenue uptick

Huawei eyes China revenue uptick

Content image - Phnom Penh Post
Yu Chengdong, CEO of Huawei’s consumer business group, unveiled the high-end P40 smartphone series in China on Wednesday. SUPPLIED

Huawei eyes China revenue uptick

Huawei Technologies Co said on Thursday that it expects revenue from its consumer business group, which includes smartphones, personal computers and tablets, to grow fast in China, despite the Covid-19 pandemic and the US government restrictions.

The forecast came after the company launched its latest high-end P40 series of smartphones in China on Wednesday, which has an indigenously developed operating system without any dependence on Google services.

Yu Chengdong, CEO of Huawei’s consumer business group, told China Daily that the company’s smartphone sales have been recovering in China and saw strong growth last month.

“Though sales declined in February, we saw growth in January and March, which helped maintain an expansion in the first quarter,” Yu said.

But the senior executive warned that the pandemic could crimp global smartphone markets for the whole year.

“It is almost impossible to avoid a decline in the global smartphone business. We will try hard not to post a drop,” Yu said.

He said tablet sales have been improving steadily as more people stay at home for work and study. Huawei is making steady progress in promoting Huawei Mobile Services, better known as HMS, which is the foundation for the company to continue selling smartphones in overseas markets.

HMS is designed to replace Google Mobile Service, after the US government banned the company from using Google’s products and services in its mobile devices.

“We have not only shortened the gap with GMS, but also built our own edge in HMS,” Yu said, adding that the company’s P40 Lite smartphones, powered by HMS, have sold well in overseas markets.

The senior executive said the P40 series will be available in all markets except for the US, Brazil and South Korea. But currently, the pandemic is affecting the company’s businesses in western Europe.

Some reports had earlier suggested that US politicians were considering steps to further contain semiconductor sales to Huawei. Yu said the proposal, if approved, will severely harm the business prospects of US suppliers.

“If the market does not deteriorate, we are confident of maintaining good growth,” Yu said.

A recent report from market research company Strategy Analytics said nearly 37 per cent of the over 1,300 respondents it surveyed said they would defer plans to buy new smartphones, while 32 per cent indicated they would postpone plans to upgrade to 5G services.

Sui Qian, research director of smartphones at Strategy Analytics, said smartphone supply chains and ecosystem are likely to recover in the second quarter, but apparently, a large number of consumers are not ready to return to the pre-pandemic purchasing patterns.

Telecom carriers, smartphone vendors and retailers must step up efforts to convince consumers that it is worthwhile to buy new smartphones, Sui said.



  • Phnom Penh unveils rules for post-lockdown transition

    The Phnom Penh Municipal Administration issued a set of detailed guidelines for the seven days to May 12 after the capital emerges from lockdown at the onset of May 6. In the 14-page document signed by municipal governor Khuong Sreng released on the evening of May 5, the

  • SBI LY HOUR Bank Launches Cross Border Money Transfer Service between Cambodia and Vietnam on RippleNet, utilizing DLT

    SBI LY HOUR Bank Plc and Hanoi-based Tien Phong Commercial Joint Stock Bank (TPBank) on Friday launched the first Cambodia-Vietnam money transfer service in real currency via RippleNet, provided by SBI Ripple Asia Co Ltd to provide safe, fast and convenient services. SBI LY HOUR

  • Gov’t issues guidelines as lockdown nears end

    The government has issued a five-page set of instructions to be enforced when the three-week lockdown of Phnom Penh and adjacent Takmao town in Kandal province ends on May 6. According to an announcement signed by Prime Minister Hun Sen on May 4, the instructions cover a

  • Cambodia ready to exit LDC status

    Cambodia is well-prepared to minimise economic risks when it graduates from its Least Developed Countries status, according to a senior official at the Ministry of Commerce on May 7. Four LDCs – Cambodia, Laos, Bangladesh and Nepal – met at a virtual workshop last week to explore potential

  • Nine US franchises eye Cambodia debut

    Nine famous US franchising companies are looking for business opportunities and expansion into Cambodia to build a footstep for a strong foundation in Southeast Asia. The US embassy in Phnom Penh, in partnership with the US Foreign Commercial Service and with support from the American

  • Lost in translation: ‘Starvation’ in capital’s designated red zones

    “DACH bay” is a Khmer slang meaning a “loss of income”, that could also be literally translated to «deprived of rice”, which alludes to starvation. However, civil society organisation (CSO) officials have independently confirmed the government’s prior assertions that there are no cases of