Huawei’s first quarter revenue tumbles as smartphone sales plunge
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Huawei’s smartphone businesses have struggled due to U.S. restrictions that prevent them from purchasing components and chips from important suppliers.
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BEIJING — Chinese telecommunications giant Huawei announced Thursday that first quarter revenue fell by nearly 14% from a year ago, while its profit margin more than halved.
Our consumer business suffered severe damage, which resulted in our ability to provide services for customers. [information and communications technology]In a statement, Ken Hu, Huawei’s rotating chairman said that the infrastructure business had experienced steady growth. We still have a complex and challenging business environment in 2022.
For the first quarter, revenue was 131 billion Yuan (or $20.63 billion). This is 13.9% less than the previous quarter and more than 27% lower than the fourth quarter 2021.
A 4.3% margin in the quarter’s first quarter was lower than the 11.1% reported last year.
Hu claimed that quarterly results were consistent with company expectations. He also stated that Huawei had increased research and development investments.
U.S. sanctions have caused Huawei’s smartphone company to struggle. Trump’s administration placed the company on a “blacklist” that prohibits them from buying crucial components, such as semiconductors, from U.S. suppliers.
Counterpoint Research has found that smartphones sales in China fell by 14%, compared to a year earlier.
Huawei saw the biggest decline among seven brands. The company ranked sixth on the market and sales plummeted by 64.2% over a previous year, the report revealed. China’s smartphone sales also dropped by 12% in the same quarter.
AppleCounterpoint found that the other listed company suffered a 23% drop in sales from China quarter to quarter. The iPhone maker saw a 4.4% increase in China sales in the first quarter, compared with a year ago.
Look at other businesses
Huawei has placed emphasis on hiring talented people developing other business linesTo counter falling smartphone sales
Huawei, despite stating that it won’t build cars of its own, has entered the electric vehicle market with its HarmonyOS operating software and other technologies.
Hu, the Rotating Chairman, stated earlier in this week that two additional models of cars using Huawei technology will be released this year. HarmonyOS’s first vehicle was launched in the Aito M5, which began deliveries earlier this year.
Huawei claimed that its research and development group for smart cars has grown to 5,000 and that it invested $1 billion in tech-related activities last year.
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