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According to the president of Huawei, they are already fighting to survive

Huawei Technologies Ltd. The Chinese maker of communications equipment and services group, reported a decline in sales in the first half of the year, mainly due to US sanctions, MTI reports on the company’s website. Huawei achieved sales of 320.4 billion yuan in the first six months of the year, down 29 percent from the previous year. The largest decline in electrical retail trade in the first six months, up 47 percent to 135.7 billion yuan.

Huawei’s revenue in the mobile network equipment business was 136.9 billion yuan, down 14.2 percent from the previous year. The decline was due to the slowing pace of 5G network development in China. In the field of enterprise equipment and services, the company’s sales volume increased by 17.2 percent to 42.9 billion yuan. Due to pandemic restrictions, companies’ demand for IT products and services has increased.

Eric ShawThe president of the company is sad about the results advertiser, puts it “Huawei is struggling to survive”.

And for the first time, he used more grim words than usual so far regarding the semi-annual report, noting, among other things, that Huawei is currently struggling for survival and trying to achieve its goals based on its five-year strategy.

Despite the revenue decline, Huawei improved its operating profitability by increasing its operating efficiency in the first six months of the year, by 0.6 percentage points to 9.8 percent year on year. However, profitability in the first quarter remained 11.1 percent.

The decline in Huawei’s retail sales is primarily due to US sanctions. Donald Trump In 2019, the president blacklisted the Chinese technology group, blocking the use of US parts and intellectual property in its products. As a result, Huawei sold 6.4 million smartphones in China in the first half of this year, compared to 27.4 million in the second half of 2020. The figure does not include sales of the lower-priced Honor brand. The brand was sold by Huawei last November.

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Huawei began commercial sales of its Harmony operating system along with its products in June. With its own operating system, Huawei is independent of Google’s Android operating system.

(MTI, CNBC)