Huawei has posted its revenue for the first half of 2021, and the result is the steepest the tech company’s revenue has ever fallen, as sanctions by the US Government continue to serve as an effective chokehold.
In its recently released report disclosing its revenue for the first half of the year, revenue fell by 29.4 percent to Rmb320.4 billion ($49.5 billion) compared to its 2020 first-half financial results.
Huawei remains at the heart of the trade war between the US and China, as US authorities accused Huawei of being used as a spy for the Chinese Government.
Chairman of Huawei Technologies Co., Eric Xu, said of the company’s resilience, “We’ve set our strategic goals for the next five years, our aim is to survive, and to do so sustainably.”
The firm’s electronics arm saw a revenue decline of Rmb120 billion, which represents 47 percent depreciation from what was recorded the previous year.
Xu added, “These have been challenging times, and all of our employees have been pushing forward with extraordinary determination and strength.”
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The sanction imposed by the United States shadows the company’s distress, which is manifest in its dropping in the ranks of smartphone brands.
In Q1 2018, Huawei had a market share, in terms of global smartphone shipments, of 11 percent, and impressive growth to 20 percent in the second half of 2020, only to fall to only 4 percent in Q1 2021, according to Counterpoint Research.
The firm was the foremost supplier of telecoms equipment and sat on the top three list of smartphone brands, neither privilege it holds today.
Following in the US’s steps, European nations have also gradually pulled away from doing business with Huawei, citing national security fears, according to AFP.
Huawei’s networking equipment, which has been blacklisted in Europe, saw a 14.2 percent drop to Rmb136.9 billion, while on the flip side, its enterprise business consisting of digital solutions services such as finance, energy, education, etc., recorded an 18.2 percent increase from the previous year to settle at Rmb42.9 billion.
Xu added, “I want to thank every single member of the Huawei team for their incredible effort. Going forward, we continue to believe deeply in the power of digital technology to provide fresh solutions to the problems the world is facing right now. We will keep on innovating to help build a low-carbon, intelligent world.”
