Technology

Huawei chairman says the “objective is to outlive” as gross sales drop 29%

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A mobile phone shows the Huawei app interface. Huawei introduced its own operating system HarmonyOS in 2019. In June 2021, the company first launched the operating system on a smartphone.

Cost photo | Barcroft Media | Getty Images

Huawei chairman said the Chinese tech company’s goal is to survive as sales fell by almost 30% in the first half of the year.

Headquartered in Shenzhen, blacklisted US trade in 2019, the company announced on Friday that it had sales of 320.4 billion yuan ($ 49.6 billion) in the first half of 2021. This is a significant decrease from the 454 billion yuan Huawei recorded in the first half of 2020.

Huawei said its profit margin rose 0.6% to 9.8%, largely due to efficiency improvements, adding that overall performance was in line with projections.

Eric Xu, Huawei’s rotating chairman, said in a statement that the company has set its strategic goals for the next five years.

“Our goal is to survive, and to do it sustainably,” he said.

Former US President Donald Trump blacklisted Huawei in 2019, a move that prevents American companies from doing business with him. For example, Google was no longer allowed to license its mobile Android operating system to Huawei.

The blacklist prevents US companies from selling or transferring technology to Huawei unless they are given a special license. It prevented Huawei from developing its own chips and sourcing other components.

Xu said in April that Huawei had increased its investment in research and development to “keep the company afloat, address the supply continuity challenges posed by US bans, and pursue sustainability well into the future.”

“Challenging Times”

Huawei’s business is divided into three sub-areas: Carrier, Enterprise and Consumer.

Huawei said its consumer business revenue fell from 255.8 billion yuan to 135.7 billion yuan year over year, due to the sale of its Honor business in late 2020.

The carrier business, which sells 5G and other telecommunications infrastructure, saw revenue decline from 159.6 billion yuan in the first half of 2020 to 136.9 billion yuan in the first half of the year.

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According to Huawei, the wireless business grew steadily outside of China in the first half of the year. In China, by far the largest market, the company was affected by delays in expanding its 5G network. Huawei expects the carrier business to grow steadily over the next six months thanks to the 5G efforts of China Mobile, China Broadcasting Network, China Telecom and China Unicom.

Corporate division revenue rose to 42.9 billion yuan in the first half of the year from 36.3 billion yuan in the first half of 2020, Huawei said.

The corporate business has grown faster outside of China than in its home market, Huawei said, adding that it will remain the company’s “most promising growth engine” this year.

“Despite a decline in sales from our consumer business caused by external factors, we are confident that our carrier and enterprise business will continue to grow steadily,” said Xu.

He added, “These have been challenging times and all of our employees have pushed themselves forward with exceptional determination and strength. I would like to thank every single member of the Huawei team for their incredible commitment. “

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