According to the Huawei president, they are already fighting for survival

According to the Huawei president, they are already fighting for survival

China’s Huawei Technologies Ltd, a telecommunications equipment maker and service group, saw its sales decline in the first half of the year, mainly due to U.S. sanctions, MTI reported on the company’s website. In the first six months of the year, sales revenue was 320.4 billion yuan, 29 percent less than a year earlier. The biggest drop in the retail equipment business in the first six months was 475 percent to 135.7 billion yuan.

Huawei’s revenue in the mobile network device business was 136.9 billion yuan, down 14.2 percent from a year earlier. The slowdown is due to the slow pace of 5G network development in China. In the enterprise equipment and services business, the company’s turnover increased by 17.2 percent to 42.9 billion yuan. Due to epidemic controls, the demand of companies for IT products and services has increased.

Eric Su, The president of the company is dark about the results Stated“Huawei is fighting for survival,” he says.

For the first time, he used slightly darker words than usual in connection with the half-yearly report, stating that, among other things, Huawei is currently struggling to survive and is striving to achieve its goals on a five-point basis. -Strategy of the year.

Despite declining revenue, Huawei improved its operating profit in the first six months of the year, increasing its operating profit by 0.6 percentage points year-on-year to 9.8 percent. In the first quarter, profits were still 11.1 percent.

Huawei’s decline in retail sales was primarily due to US sanctions. Donald Trump In 2019, the president blacklisted the Chinese technology group and banned 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, and 27.4 million in the second half of 2020. This figure does not include sales of the lower priced Honor brand. The brand was sold by Huawei last November.

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In June, Huawei began commercial sales of its own Harmony operating system with its products. With its own operating system, Huawei is free from Google’s Android operating system.

(MTI, CNBC)

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