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Huawei’s revenue growth slowed sharply in the third quarter while its margin dipped as U.S. sanctions disrupt its business, CNBC reports.

Revenue for the September quarter came in at 217.3 billion yuan (US$31.91 billion), up just 3.7 percent from the 209.5 billion yuan recorded in the same period last year.

For the first nine months of the year, revenue was 671.3 billion yuan (US$98.57 billion), up by 9.9 percent from the 610.8 billion yuan reported in the same period last year. That is a significant slowdown in growth. In the first nine months of 2019, Huawei’s revenue growth was 24.4 percent.

Meanwhile, Huawei’s net profit margin was 8 percent for the first nine months of the year, down from 8.7 percent in the same period last year.

Washington’s sanctions are clearly hurting the Chinese company.

Last year, Huawei was put on a U.S. export blacklist known as the Entity List. Google cut ties with Huawei meaning the Chinese firm’s smartphones could no longer use licensed Android mobile operating system software. That has hurt Huawei’s smartphone sales outside of China, while its domestic market has thrived.

Huawei did not release a breakdown of what parts of its business contributed to revenue growth.

Earlier this year, Huawei said that its consumer business, which includes its smartphones, was responsible for nearly all of the US$12 billion shortfall in revenue it saw in 2019 versus its own targets.

US Sanctions slowing Huawei revenue growth