HUAWEI doesn’t seem to have recovered from the US trade ban as the company reported a steep decline in its earnings during 2021 H1 results today. HUAWEI revenue dropped to CNY320.4 billion (~$49.5 billion) in the last quarter, almost a 30% decline year-on-year.
Despite the declining revenue, HUAWEI’s Chairman, Eric Xu, claims that the company has set its “strategic goals for the next five years.” He says that the company will do everything to “survive.”
“We are confident that our carrier and enterprise businesses will continue to grow steadily.”
On a slightly positive note, though, the company reported a 0.6% increase in profits, up from 9.2% in H1 2020 to 9.8% in 2021. HUAWEI says its enterprise business, which contributed only a little amount of over CNY42 billion, is booming and is the fastest-growing out of the rest three. Moreover, the company says it has no plans of cutting down on staff or shutting down its business overseas.
One of the major factors of this revenue decline is the delay in 5G deployment in China. China Mobile, one of China’s largest carriers, delayed its 700 Mhz 5G tender to mid-July. HUAWEI was expecting to mint money through the sale of this tender as the company had secured 60% of the contract.
Its mobile division isn’t doing well, either. The company ranked below OPPO, Vivo, and even Motorola in terms of smartphone shipments as Xiaomi closed the gap with Samsung.
With the US government showing no signs of making things easy for HUAWEI with respect to the existing trade restrictions – and made things even trickier for 5G equipment trade earlier this month – remains to be seen how the company charts its business plan for the international markets.