Huawei Sanctions Announce 29% Drop in Revenue This Year

Published on: Amended:

Beijing (AFP) – Chinese telecommunications giant Huawei said on Friday its annual revenue fell by nearly a third from the previous year as it continued to be weighed down by US sanctions that hit its smartphone sales .

Huawei has been caught in the crossfire of a business and technology rivalry between the United States and China after the administration of former President Donald Trump decided to bring the company to a standstill over fears it posed a threat for cybersecurity and espionage.

The company’s revenue for this year fell 29 percent year-on-year to 634 billion yuan ($ 99.5 billion), rotating chairman Guo Ping said in an annual New Year message.

“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 total sales of 634 billion yuan.

He added that the telecom operator segment had “remained stable” and that “the overall performance was in line with our forecasts”.

Huawei’s revenue fell in 2021 in part due to the unloading of its Honor budget phone brand, which sold out late last year.

Huawei is not publicly listed and the post gives no further financial details.

Guo said the company was on a “bumpy, but rewarding” road, adding that 2022 would come with “its fair share of challenges.”

Huawei’s struggles forced it to quickly turn to new lines of business, including business computing, wearable devices and health tech, 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.

This month, the company launched a new foldable phone and said 220 million Huawei devices are running its HarmonyOS system.

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.

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

In October, the group said its sales volume from January to September fell 32%.

But a major complication for the company was resolved this year with the return to China of chief financial officer Meng Wanzhou, the daughter of Huawei founder Ren Zhengfei.

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.