Huawei's revenue drops as US sanctions bite
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Huawei has announced on Friday that its annual revenue had dropped from the previous year, as the company continues to be weighed down by US sanctions.
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Huawei's revenue has fallen in 2021.
Huawei, the Chinese telecom giant, announced on Friday that its annual revenue had dropped by nearly a third from the previous year, as the company continues to be weighed down by US sanctions that have harmed its smartphone sales.
Huawei had received a blow after former President Donald Trump's administration moved to cripple the company over alleged concerns that it could pose a cybersecurity and espionage threat.
According to rotating chairman Guo Ping's annual new year message, the company's revenue this year fell by 29% year-on-year to 634 billion yuan ($99.5 billion).
"In 2021, despite all the trials and tribulations, we worked hard to create tangible value for our customers and local communities," Guo said.
"We enhanced the quality and efficiency of our operations, and expect to round off the year with a total revenue of 634 billion yuan."
He added that the telecom carrier segment had "remained stable" and "overall performance was in line with our forecasts."
Huawei's revenue has fallen in 2021, owing in part to the sale of its budget phone brand Honor late last year.
Guo described the company's journey as "bumpy but rewarding," adding that 2022 will bring "its fair share of challenges."
Huawei's difficulties have forced it to quickly pivot into new business lines such as enterprise computing, wearables and health tech, intelligent vehicle technology, and software.
The US bars Huawei
The United States has barred Huawei from acquiring critical components such as microchips and has forced it to develop its own operating system by preventing it from using Google's Android.
This month, the company unveiled a new foldable phone and announced that its HarmonyOS system was running on 220 million Huawei devices.
The company is the world's largest supplier of telecom network equipment and was once a top-three smartphone manufacturer alongside Apple and Samsung. But it has fallen well down the smartphone ranks owing to US pressure.
In October, the company reported a 32% drop in sales volume from January to September.
