Huawei revenue sees biggest ever fall


The company generated revenue of 320.4 billion yuan ($49.56 billion), it said on Friday.

The biggest decline came from Huawei’s consumer business group, which incorporates handsets, where revenue fell 47% to 135.7 billion yuan.

It eked out a 0.6 decimal point rise in its net income margin to 9.8%, largely thanks to efficiency improvements, a corporation spokesperson said.

In 2019 former U.S. President Donald Trump put Huawei on an export blacklist and barred it from accessing critical technology of U.S. origin, affecting its ability to style its own chips and source components from outside vendors.

The sanctions hobbled Huawei’s handset business, with Huawei within the towel|chucking up the sponge|dropping by the wayside|giving up|quitting|falling by the wayside”> throwing in the towel of the highest five vendors in China for the primary time in additional than seven years in the second quarter, shipping 6.4 million units, consistent with consultancy Canalys.

That compares with 27.4 million handsets shipped in China in Q2 2020, excluding shipments of Honor budget handsets. Huawei sold the brand in November.

The consumer business brought in over half the company’s revenue in 2019.

Revenue also fell 14% within the half from Huawei’s telecoms equipment business, which a spokesperson said was partially right down to the slowdown in China’s 5G rollout.

Huawei is trying to pivot towards software and business areas not in danger of U.S. pressure, consistent with an indoor memo from founder and CEO Ren Zhengfei seen by Reuters in May.

“Our aim is to survive, and to try to to so sustainably,” said Eric Xu, Huawei’s rotating chairman, during a statement on the results. “We’ve set our strategic goals for subsequent five years.”

The company started rolling out its Harmony OS in June, meaning it’s not wholly reliant on Google’s Android platform.

U.S. sanctions barred Google from providing technical support to new phone models.

First-half revenue from Huawei’s enterprise business group grew 18% to 42.9 billion yuan, because the COVID-19 outbreak spurred industry demand for ICT connectivity, a spokesperson said.

Huawei is additionally seeing strong growth in its cloud services business, quite doubling in size within the half-moon to require a 20% market share in China, consistent with Canalys.

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