THE Huawei, a Chinese manufacturer that once challenged Apple and Samsung in the smartphone and other mobile device market, is currently far from the Top 5 and continues to languish in international markets. In fact, the first account reports having been published, we see a steep drop in revenue – 28.9% compared to 2020, but still showing resilience.
Technology continues to fall after the sanctions imposed by the United States of America more severely in 2019 and successively aggravated by the new executive Biden.
Now, according to the post GizmochinaCiting fiscal reports from China as a source, it is estimated a fall of close to 30% in the volume of income obtained in 2021 compared to 2020.
Projected 2021 Revenues Point to Strong Recession Scenario for Huawei
According to revenue forecasts for 2021, Huawei will have collected 634,000 million yuan, about 100,000 million dollars or 88,000 million euros. Additionally, the results for the fourth quarter (October to December 2021) point to a slowdown of 19% compared to the previous quarter (July to September).
According to the same source, in the last three months of 2021 Huawei will have raised 178.2 billion yuan, or about 24.7 billion euros. It should be noted that, despite international pressure, Huawei had a notable recovery in some sectors of its activity.
However, essentially deprived of its smartphone segment due to sanctions imposed by the United States of America, this slight recovery was not enough to balance the fiscal balance of Chinese technology.
Good performance in the usable with your smart watches
Huawei cannot create new products, such as smartphones, capable of attracting consumers by being deprived of access and use of Google services, a key aspect of the Android operating system. Also, their HarmonyOS is, for now, a novelty that consumers outside of China have not subscribed to.
Thus, we see a Huawei that cannot compete in the smartphone market in several countries where it previously had a strong presence. This is felt with particular impact in Europe, a region where Xiaomi and OPPO quickly divided the market share that belongs to Huawei.
Senior executive Guo Ping, who is responsible for Huawei’s design, says its telecommunications department remains strong. At the same time, he says that Huawei’s other branches of operation continue to grow apace.
The drop is mainly due to the company’s smartphone division. However, the brand remains optimistic about its future and shows resilience in a market that is currently adverse to it.
In short, after a difficult year in 2020 and a worsening of results in 2021, Huawei remains optimistic about its future, reaffirming that 2022 will be full of new opportunities.