During the first half of 2021, Huawei faces the biggest revenue fall in its entire history. Since the Chinese giant had a clash between US tech giants, things are pretty bad for Huawei.
Huawei revealed its biggest-ever decline in revenue in the first half of 2021 – it fell by almost 30% to Rmb320 billion (£35.5 billion) while the biggest decline came from Huawei’s consumer business group, which includes handsets, where revenue fell 47% to 135.7 billion yuan.
Also, the Chinese giant recently sold part of its mobile phone business following US sanctions, which analysts say contributed to the drop. Sanctions also make it hard for Huawei to buy components that are associated with US technology. The global semiconductor shortage has also affected Huawei’s revenue as Huawei manufactures its own chipset named Kirin.
Huawei officials said the clash between China and America has created major difficulties for Huawei,
“US sanctions have posed great difficulties to our business operations and day-to-day work,”Richard Yu, Huawei’s Consumer Devices Chief
The sanctions have also effectively prevented Huawei devices from working fully with Google’s Android Operating system. Recently, Huawei launched its own operating system called HarmonyOS.
BBC reported that Huawei’s telecoms equipment business also saw a decline in revenue. A spokesperson for the company told Reuters this was due to the slow rollout of 5G in China. But sales outside China increased, in spite of US pressure on its allies to exclude Huawei from 5G infrastructure over concerns about national security.
Huawei denies allegations that its equipment poses a security risk, and has called the claims politically motivated. The company saw growth from its enterprise and cloud services businesses.
Also, Efficiency improvements also saw profit margins increase. It increased about a 0.6 percentage point rise in its net profit margin to 9.8%, largely due to efficiency improvements. Huawei, while facing massive loss is trying its best to survive.
“Our aim is to survive, and to do so sustainably,”Eric Xu, Huawei’s Chairman
Huawei during its inception was quite popular for providing value for money smartphones But after its clash with US giants, the company has lost the majority of its consumer market because of the unavailability of Google Apps.
They have one of the best beauty and the beast kinda flagship smartphones. Their P-series is still the sexiest one. The upcoming Huawei flagship is known to be a camera powerhouse but it won’t sell like hotcakes because the only market where Huawei is stable is the Chinese market.
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