Huawei Technologies reported for the first half of this year the biggest decline in revenue in its history, following the impact of US sanctions on its mobile business and before the maturation of other developing group businesses, Reuters reports.
The company earned 320.4 billion yuan ($ 49.56 billion) in the first six months. The biggest decline was in the consumer division, which includes mobile phones, whose revenue fell 47 percent to 135.7 billion yuan.
The net profit margin rose 0.6 percentage points to 9.8%. Mostly due to increased efficiency, said a company spokesman.
In 2019, former US President Donald Trump included Huawei on a blacklist of companies, barring it from accessing major US technologies, undermining the company's ability to design chips and supply components from external suppliers.
Huawei is one of the top suppliers in China
The sanctions affected Huawei's mobile phone business, which in the second quarter came out of the top five suppliers in China for the first time in seven years, with deliveries of 6.4 million units, according to consulting firm Canalys .
THE COMPLETE ANNOUNCEMENT came on the last day of the year! What will happen in 2022 is absolutely awful: There will be a shock on April 1st. It will apply until March 31st! The bomb of the day for Romanian employees. The government has decided to strike a blow at Lidl and Kaufland. The giant that comes to Romania. He will face them
In the second quarter of 2020, Huawei delivered 27.4 million phones to China, excluding the delivery of cheap Honor phones. Huawei sold the brand in November.
In 2019, the consumer division generated more than half of the group's revenues.
Huawei's telecommunications equipment division revenue fell 14 percent in the first half, a decline that, according to a spokesman, was partly due to a slowdown in the installation of 5G networks.
Huawei is trying to grow in the software sector and areas that are not exposed to US pressure, according to an internal memo from the group's founder and CEO Ren Zhengfei in May.
"Our goal is to survive and make it sustainable," said Eric Xu, rotating president of Huawei, in a statement on the group's results.
The half-year revenue of the business services division rose 18% to 42.9 billion yuan.
Huawei is strongly expanding its cloud services division, which has more than doubled its market share in China by 20%, according to Canalys.
Photo source: Dreamstime