HONG KONG – Huawei Technologies Co. reported a sharp drop in revenue in the first quarter as its smartphone sales fell and the Chinese tech giant continued to fight under US sanctions. The Shenzhen-based company blamed it for the drop in revenue partly from the sale of its budget smartphone unit, Honor, in November. But Huawei’s overall smartphone sales declined globally after US restrictions prevented its phones from running Google apps and other US software.
Revenues fell 16.5% from the previous year to 152.2 billion yuan, the equivalent of about 23.5 billion dollars, during the first quarter, the company said. It was the second consecutive quarterly drop, after a 11.2% drop in the fourth quarter. The company, which is closely watching and publishes a limited financial snapshot every three months, did not release quarterly revenue figures, but said its net profit margin increased 3.8 percentage points to 11.1%. It attributed that increase to patent royalty income of $ 600 million and efforts to improve its operations and management efficiency. An expanded version of this article appears on WSJ.com. WSJ.com Popular Stories: