Huawei’s revenue in the first half of 2021 dropped drastically, down 29.4% over the same period a year earlier.
In its report, Huawei said that its revenue was 320 billion yuan, down from 454 billion yuan it earned the year before.
If broken down, their revenue from the telecommunications equipment business dropped 14 percent to 137 billion yuan and their revenue from the consumer business dropped 47 percent from 221 billion yuan to 136 billion yuan.
But there are also Huawei businesses that are experiencing an increase in revenue. That is the business of the company whose revenue increased 18 percent to 36 billion yuan, as quoted by Bloomberg, Monday (9/8/2021).
There are also businesses from the cloud services sector that are experiencing an increase. Recently, Huawei has explored new business sectors to stay afloat.
“Our goal is to survive and do it sustainably,” said Huawei Chief Eric Xu.
In addition to restrictions from the United States, according to Huawei, this decline in revenue is also due to the global chip shortage.
“Restrictions from the U.S. are the biggest obstacle to our business operations,” said Richard Yu, CEO of Huawei Consumer Business Group, in early 2021.
As a result of the restrictions, Huawei was even knocked out of the top five mobile phone market segments in China, with shipments of 6.4 million mobile phones. This is a far cry from Q2 2020 where they shipped 27.4 million units of mobile phones, including from Honor which has now been released.
The decline in revenue from the telecommunications equipment business also declined due to the slowdown in the construction of 5G networks in China. Fortunately, sales of telecommunications equipment outside China are on the rise.
In fact, the US is clearly urging its allies not to use Huawei’s infrastructure as it is considered a threat to national security. Huawei has repeatedly denied the allegations, calling them baseless and political.
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