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Huawei faces its biggest revenue fall

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Huawei

Huawei reported its largest-ever drop in revenue during the first half of 2021. It fell by 30% to Rmb320billion (PS35.5billion).

Analysts believe that the firm sold a portion of its mobile business after US sanctions.

Huawei is unable to purchase components or software that uses US technology because of sanctions.

The revenue from Huawei’s consumer electronics division, which includes smartphones, decreased by 47%

Huawei also mentioned the impact of the chip shortages on its business.

The company’s chief consumer device officer acknowledged the difficulties it faced earlier this year. Richard Yu stated that the US sanctions had posed significant obstacles to the company’s business operations and daily work. Launch of a New Phone.

These sanctions also prevented Huawei devices from working with Google’s Android Operating System fully. This has prompted the firm to increase its use of its operating system. Harmony OS.

Slow rollout

The revenue of Huawei’s telecoms equipment division also fell.

The company’s spokesperson Reuters. This was due to 5G’s slow rollout in China.

Despite US pressure from its allies to exclude Huawei 5G infrastructure, sales outside China rose despite this.

Huawei has denied allegations that its equipment is a security threat and called the claims politically motivated.

The cloud services and enterprise businesses saw the company grow.

It said that efficiency improvements led to increased profit margins.

Chairman Eric Xu stated in a statement that “We aim to survive and do so sustainably.”

 

Reference: bbc.com