Brazilian consumer electronics manufacturer Positivo has posted weak results as a consequence of the impact of the dollar hike against the local currency, the real.
This has meant an increase in the cost of materials for the company. As well as the impact of the dollar surge, the company mentioned that it had to apply higher discounts for products like smartphones to fend off competition.
The company posted a net loss of 11,6 million reais ($2,9 million) for the second quarter of 2018, compared to net profit of 2,2 million reais ($550,000) for the same period in 2017.
In previous years, the Brazilian manufacturer had managed to navigate through the current economic instability in the country and turn things around with foreign exchange hedging mechanisms.
However, things might start to look up for the company in the near future as Huawei announced a partnership with Positivo as core to its return to the local smartphone market.
The Brazilian company will be handling the import and sales aspects of the operation, as well as after sales and technical support for the Huawei products locally.