Tuesday, February 27, 2024

China’s Huawei 2021 Revenue Downs almost 30% due to US Sanctions

The Chinese telecoms equipment giant Huawei Technologies, which has been pummelling by US sanctions, anticipates revenue in 2021 to have plummeted by roughly 30% and predicts that the problems will continue in the New Year. Rotating chairman Guo Ping said in a New Year’s message to staff on Friday that the company expects revenue of CNY 634 billion (approximately Rs. 739479.606 crore) for the year.

Guo acknowledged that the coming year “would bring its fair share of obstacles,” but he expressed satisfaction with Huawei’s commercial success in 2021. “An unstable economic climate, the politicisation of technology, and the growth of the anti-globalisation movement all present significant obstacles,” according to the letter, which was posted on the company’s website on Monday.

Earlier this year, the United States’ Trump administration placed a trade embargo on Huawei, claiming national security concerns. The restriction prevented the business from utilising Alphabet’s Android operating system for its new handsets, as well as other important US-made technologies.

The impact of US sanctions, along with lower domestic demand as a result of the coronavirus, had a negative impact on Huawei. According to Guo, “we must stick to our approach and respond logically to external factors that are beyond our control.”

According to the letter, Huawei would continue to concentrate on information and communications technology (ICT) infrastructure as well as smart gadgets. According to Huawei’s most recent financial report, the company’s third-quarter sales decreased by 38 percent when compared to the same period the previous year. The income for the first three quarters was down by about a third compared to the same period last year.

Read also: Tesla Will Recalls 475,000 US Vehicles due to Technical Problems

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