The largest manufacturer of network equipment for phone and internet carriers reported a 2.2% reduction in revenue to 445.8 billion yuan ($63.1 billion) in the first nine months of 2022 compared to the same period last year.

According to data revealed on Thursday, Chinese tech giant Huawei's revenue increased in the most recent quarter as infrastructure sales helped to overcome damage to its smartphone industry due to U.S. sanctions.

The largest manufacturer of network equipment for phone and internet carriers reported a 2.2% reduction in revenue to 445.8 billion yuan ($63.1 billion) in the first nine months of 2022 compared to the same period last year. According to information that had already been made public, third-quarter sales of $144.2 billion ($19.9 billion) was up 6.5% over the same period last year.

Since then-President Donald Trump restricted access to American processor chips and other technologies in 2019, Huawei Technologies Ltd., China's first international tech company, has struggled. The corporation disputes American claims that it poses a security concern and might make Chinese espionage easier.

The development of network technology for automobiles, hospitals, mining, and factories has been accelerated by Huawei. It claims that is less susceptible to penalties from the US.

The business reported a 6.1% profit margin for the first nine months of 2022, or over 27 billion yuan ($3.7 billion). It stated there was a decrease from the prior year but provided no further information.

This year “may prove to be the most challenging” for smartphones and other devices, a separate company statement said. It gave no sales details. Huawei supplies components and software for navigation, dashboard displays, managing vehicle systems and other services.

One of the three Huawei executives who serves as chairman for a period of time, Eric Xu, stated in a statement that 'the fall in our device business continued to slow down, while our ICT infrastructure business maintained stable development.' China accounts for half of Huawei's 195,000 global employees and the company claims that its citizens own it. Huawei was founded in 1987.