US sanctions take a hard toll on Huawei’s revenue
Huawei’s revenue for the first nine months of 2021 fell by almost a third year-on-year, largely attributed to its consumer business where it suffered a drop in handset sales and divested sub-brand Honor.
In a brief trading update, Huawei reported US$71.3 billion in revenue for the nine months to end-September compared with US$104.8 billion in the same period of 2020.
Huawei noted the performance was in line with expectations, particularly after US sanctions affected its handset business, to the extent that it dropped from the top three biggest handset shippers into the world to now where it is completely off the radar.
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Rotating Chairman Guo Ping explained while Huawei’s B2C business had been “severely impacted” during the recent period, its B2B segment was stable.
“Through our ongoing commitment to innovation, R&D, and talent acquisition, and rigorous attention to operating efficiency, we are confident we will continue to create practical value for our customers and the communities in which we work.”
The only other figure the company divulged in its update was its net profit margin, which was 10.2 per cent compared to 8 per cent in the same period of 2020. It provides more detailed analysis on a half-yearly basis.
Huawei’s issues with US and other authorities have been well documented, as has its related decline in the smartphone segment.
However, the company has outlined on numerous occasions it intends to regain its place in the device market alongside entering new lines of business.
