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Huawei’s revenue shrank by 16.5% in the first quarter

Huawei's revenue shrank by 16.5% in the first quarter
Huawei's revenue shrank by 16.5% in the first quarter

Huawei revenue shrank in the first quarter

Huawei Technologies Co. said its revenue fell 16.5% in the first quarter to RMB 152.2 billion (US$23.5 billion).

However, the technology giant said that the decline in revenue in the second quarter was in line with previous expectations. Huawei earlier announced an 11% drop in revenue for the three months ending in December.

The company said that in the first three months of this year. Its net profit margin increased by 3.8 percentage points year-on-year to 11.1%. mainly due to its continuous efforts to improve the quality of operations and management efficiency, as well as patents. Royalties income is $600 million.

The reason for the decline in revenue was the restrictions imposed by the US and other governments on the company. Which severely damaged its smartphone business. Huawei said that its network business continued to maintain steady growth. While revenue from the consumer business declined, partly because of sales of the Honor smart device brand in November.

Xu Zhijun, Huawei’s rotating chairman

said: “2021 will be another challenging year for us, and it will also be a year when our future development strategy will begin to take shape.

“We thank our customers and partners for their continued trust. No matter what challenges we encounter, we will continue to maintain business flexibility. This is not only for survival, but also for sustainable development. We will continue to focus on customer needs and continue to provide practical Business value.”

Huawei said it will increase its efforts to fully release the value of 5G and help global operators launch 5G networks to meet the needs of consumers and the industry. While improving its own delivery efficiency. It will continue to improve its software engineering capabilities and increase investment in the software field to gradually increase the proportion of software and services in its total revenue structure.

Xu said: We will continue to devote ourselves to technological innovation, and invest heavily in research and development. Strive to meet the challenges of continuity of supply brought about by market restrictions. We will continue to make breakthroughs in basic science and advance the technological frontier.

Under the increasingly stringent restrictions of the US government.

Huawei has been increasing its efforts to explore the Chinese market. Including continuous efforts to expand its local cloud computing business and smart photovoltaic solutions to help Chinese companies reduce their carbon footprint.

Huawei is also increasing its investment in autonomous driving technology, including software and smart auto parts, because the Chinese technology giant aims to seek new growth points.

Nicole Peng, vice president of Canalys mobile business, said earlier that in the smartphone business. This may be the toughest time for Huawei because it cannot even serve its own domestic market.

“Despite the huge demand for Huawei’s equipment, Huawei’s shipments in the fourth quarter of last year fell by nearly 50% from the previous quarter because the company could not meet the demand in the foreseeable future.

THE REAL ESTATE MARKET REMAINS OPTIMISTIC THIS YEAR

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Written by Hüseyin Ali

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