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Huawei sees its revenue fall 29% compared to 2020, can the company go uphill?

Huawei sees its revenue fall 29% compared to 2020, can the company go uphill?

Huawei is involved in a turmoil that seems to have no end. Since the beginning of the American restrictions, the Chinese company has been losing more and more money. According to a recent financial report, it recorded 29% lower revenue in the first half of 2021, compared to the same period last year.

The recent release of Huawei P50 is a big problem for the Chinese company. Since the Trump administration declared its sanctions, things haven’t really looked good. private android, the manufacturer had no choice but to develop its operating system, HarmonyOS. Despite everything, the latter doesn’t seem to be able to reassure users and investors. for many months, Huawei is losing money. A lot of money.

The first financial report of the year, corresponding to the first quarter, gave the color. Compared to 2020, the manufacturer had sales 16.5% lower. Since then, things have not improved. At the end of June, the company recorded a 29.4% drop in revenue. Although its activities generated 454 billion yuan (59.6 billion euros) in the same period last year, it generated only 320 billion (42 billion euros) yuan in the past 6 months.

Huawei is confident about the future, but should it?

Obviously, this unstoppable drop is felt in all areas. In China, the country where it once ruled, Huawei is no longer among the top 5 smartphone sellers. Other areas of the business are also suffering. Its revenues generated by its operator activities fell 14%, while its consumption section fell 13.7%. However, other areas are doing better, like business, which is 18% increase to 36 billion yuan (4.7 billion euros) reported.

Eric Xu, a member of the board of directors, is optimistic. “Despite the drop in revenue from our consumer business due to external factors, we are convinced that our operator and related business activities will continue to grow steadily”, he has. As the corporate division numbers show, Huawei seems to have a playing card on this side.. However, Eric Xu acknowledges that the company has “It went through difficult times, and everyone [ses] the employees moved forward with extraordinary determination and strength”.

Source: ZDNet

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