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It Wasn’t the Pandemic
Huawei's revenue was 320.4 billion yuan ($49.6 billion), down 29.4% Y/Y in 1H21 as smartphones sales tumbled under U.S. sanctions for alleged technology and security violation. Part of the decline was due to Huawei's November sale of its low-cost Honor smartphone brand in hopes of reviving the unit by separating it from the sanctions on the parent company. Sales by Huawei's consumer unit (42% of total revenue), including smartphones, tumbled 47% Y/Y. Sales of network gear and other technology to phone and internet companies fell 14.2% while revenue for the enterprise unit rose 17.2%.The company provided no profit figure but said its net margin was 9.8% for Q221, a decline from the 11.1% reported for the first quarter.
Huawei reported a 3.8% profit gain in 2020 to 891.4 billion yuan ($135.8 billion), but CEO Xu warned 2021 would be a “challenging year.” Huawei has responded by emphasizing its sales in China and for electric and self-driving cars, industrial networks and other applications that are less vulnerable to U.S. pressure.
Huawei's revenue was 320.4 billion yuan ($49.6 billion), down 29.4% Y/Y in 1H21 as smartphones sales tumbled under U.S. sanctions for alleged technology and security violation. Part of the decline was due to Huawei's November sale of its low-cost Honor smartphone brand in hopes of reviving the unit by separating it from the sanctions on the parent company. Sales by Huawei's consumer unit (42% of total revenue), including smartphones, tumbled 47% Y/Y. Sales of network gear and other technology to phone and internet companies fell 14.2% while revenue for the enterprise unit rose 17.2%.The company provided no profit figure but said its net margin was 9.8% for Q221, a decline from the 11.1% reported for the first quarter.
Huawei reported a 3.8% profit gain in 2020 to 891.4 billion yuan ($135.8 billion), but CEO Xu warned 2021 would be a “challenging year.” Huawei has responded by emphasizing its sales in China and for electric and self-driving cars, industrial networks and other applications that are less vulnerable to U.S. pressure.
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