This year’s revenue fell by 30%, Huawei predicts its business will remain depressed in 2022

ILLUSTRATION. FILE PHOTO: The Huawei logo is seen on a badge pinned to a woman’s sari at the India Mobile Congress in New Delhi, India, October 14, 2019. REUTERS/Anushree Fadnavis/File Photo

Source: Reuters | Editor: Thomas Hadiwinata

KONTAN.CO.ID – BEIJING. Huawei Technologies Co Ltd expects its revenue so far this year to fall by nearly 30%. The Chinese telecommunications equipment giant, which has been hit by US sanctions, expects challenges to its business activities to continue over the coming year.

Revenue for this year is projected to reach 634 billion yuan, or the equivalent of US$99.48 billion, rotating chairman Guo Ping said in a New Year’s letter to employees on Friday.

The figure reflects a 28.9% decline in 2020 revenue of 891.4 billion yuan.

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Despite declining revenues, Guo said he was satisfied with Huawei’s business performance in 2021. He said that next year a number of challenges would return.

“The unpredictable business environment, the politicization of technology and the growing deglobalization movement all present serious challenges,” reads an excerpt from the letter posted on the company’s website.

In 2019, the Donald Trump regime imposed a ban on domestic companies from trading with Huawei, citing national security reasons. The ban means that Huawei can no longer buy products from the US, including the Android operating system, for use on its mobile phones.

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The US sanctions, along with the domestic market downturn due to the coronavirus, weighed on Huawei’s performance.

“We must stick to our strategy and respond rationally to external forces that are beyond our control,” Guo said.

Huawei will continue to focus on information and communication technology (ICT) infrastructure and smart devices, the letter said.

Third-quarter revenue fell 38% compared to a year earlier, Huawei’s latest earnings report showed. Revenues in the first three quarters fell by almost a third year-on-year.

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