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Huawei Turnover Continues to Fall

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Huawei sees its turnover drop sharply. This is mainly due to the American sanctions, which continue to hit the company as a telecom manufacturer and smartphone manufacturer.

 

The turnover for the first half-year amounted to 320.4 billion yuan, in the first half of last year it was 454 billion yuan, a decrease of thirty percent.

The carrier business, equipment for telecom operators, had sales of 136.9 billion yuan (159.6 billion yuan a year ago). The consumer business comes in at 135.7 billion yuan (225.8 billion yuan a year ago).

What is growing is the smaller Enterprise business. It has a turnover of 42.9 billion yuan compared to 36.3 billion yuan a year ago. Huawei also says that its net profit margin is 9.8 percent.

Huawei has been receiving heavy blows from the US for several years now. The country has banned the company’s devices and equipment for several years. Still, it is also forcing other countries to no more extended use of Huawei network equipment for fear of espionage. The US has never provided any evidence for this, but those claims do deal serious blows to the company.

On the smartphone side, Huawei has been banned from using Google services for several years, so that their phones can only be equipped with a very limited version of Android so that sales have almost come to a standstill.

“We have set out our strategic objectives for the next five years,” said Chairman Eric Xu. ‘Our goal is to survive and to do so as sustainably as possible. We do this by creating useful value for customers and partners. Despite a decline in consumer business sales due to external factors, we are confident that our carrier and enterprise business will continue to grow at a steady pace.”

Huawei, for example, has been trying to reposition itself for a while on activities that are less subject to American meddling. For example, its cloud business is growing, and it will probably focus on markets where the US is less influential, such as its own Chinese market.

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