Founded in 1987, Huawei is a leading global provider of information and communications



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annual report 2020 en

(vi) Provision for warranties
As explained in note 28(b), the Group makes 
provision for assurance warranties in respect of 
its Consumer Business and certain Enterprise 
Business products, taking into account 
the Group’s recent claim experience and 
anticipated claim rates for affected products. 
As the Group is continually upgrading its 
product designs and launching new models, 
it is possible that the recent claim experience 
is not indicative of future claims that it will 
receive in respect of past sales. Any increase or 
decrease in the provision would affect profit or 
loss in future years.

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