Huawei’s revenue for last year drops by nearly a third

Chinese telecommunications giant Huawei Technologies Inc (華為) said yesterday that its annual revenue last year fell by nearly a third from the previous year as it continued to be weighed down by the US sanctions that affected its sales of smartphones.

Huawei has been caught in the crossfire of a U.S.-Chinese business and technology rivalry after the administration of former U.S. President Donald Trump decided to cripple the company over fears it posed a cybersecurity threat and spying.

The company’s revenue for this year fell 29% year-on-year to 634 billion yuan ($ 99.5 billion), Huawei Chairman Guo Ping (郭平) said in a message. new year’s annual.

Photo: AFP

“In 2021, despite all the trials and tribulations, we have worked hard to create tangible value for our customers and local communities,” Guo said.

“We have improved the quality and efficiency of our operations and expect to end the year with a total turnover of 634 billion yuan,” he said.

The telecom operator segment had “remained stable” and “overall performance was in line with our expectations,” he said.

DISCHARGE OF HONOR

Huawei’s revenue fell last year in part due to the unloading of its Honor budget phone brand, which sold out in late 2020.

Huawei is not a publicly traded company.

The message gave no further financial details.

The business was on a “bumpy, but rewarding” road, Guo said, adding that this year will come with “its fair share of challenges.”

Huawei’s struggles forced it to quickly turn to new lines of business, including business computing, wearable and healthcare technologies, smart vehicle technology, and software.

The United States has banned Huawei from acquiring crucial components like microchips and forced it to create its own operating system by preventing it from using Google’s Android operating system.

Last month, the company released a new foldable phone and said 220 million Huawei devices are running HarmonyOS.

STOPPING THE SMARTPHONE

The group is the world’s largest supplier of telecommunications network equipment and was once one of the top three smartphone makers along with Apple and Samsung.

However, it fell well in the ranking of smartphones due to American pressure.

In October, the group said its sales volume for the first nine months of last year fell 32%.

However, a major complication for the company was resolved last year with the return to China of Huawei chief financial officer Meng Wanzhou (孟 晚 舟), daughter of Huawei founder Ren Zhengfei (任 正 菲).

She spent nearly three years under house arrest in Canada under a US extradition warrant, which China says was politically motivated.

Meng was released a month ago after US prosecutors announced a deal under which fraud charges were to be stayed and ultimately dropped.

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