In the first half of 2021, Huawei revealed its biggest-ever revenue decline – revenue fell by almost 30% to 320 billion Rmb (£35.5 billion).

The company sold off part of its mobile phone business following the US sanctions, which analysts say contributed to the decline. Revenue at Huawei’s consumer electronics business, which includes phones, fell 47%.

Huawei also cited the impact of the chip shortage on its business. Sanctions imposed by the US make it difficult for Huawei to buy components and software using US technology.

Earlier this year, the company’s head of consumer devices acknowledged the challenges: “US sanctions have caused great difficulties for our business operations and our day-to-day work,” said Richard Yu, as the company announced the launch of a new phone.

The sanctions have also prevented Huawei devices from fully interoperating with Google’s Android operating system, prompting the company to expand the use of its own Harmony OS.

In addition, Huawei’s telecom equipment business has also suffered a setback. A company spokesman told Reuters that this was due to the slow rollout of 5G in China. However, sales outside China have increased, despite pressure from the US on its allies to exclude Huawei from 5G infrastructure over national security concerns. Huawei denies allegations that its equipment poses a security risk and has called the claims politically motivated.

However, good things have happened to the company: it has seen growth in its enterprise and cloud services businesses, with improved efficiency and higher margins. President Eric Xu said in a statement, “Our goal is to survive, and to do so in a sustainable way”.

Source: BBC News