The company’s data showed, Thursday, that the revenues of the Chinese telecommunications giant, Huawei, decreased by 2.2 percent on an annual basis in the first three quarters of 2022, as the Corona virus and US sanctions led to a decline in sales.
Huawei generated revenue of 445.8 billion yuan ($61.76 billion) in the first three quarters of 2022, down from 455.8 billion yuan in the same period a year earlier, according to company data.
Huawei provided few details and did not include a breakdown of its data by business sector.
“Our hardware business has been affected by the COVID-19 virus and the global economic downturn,” a company spokesperson told AFP.
“Overall performance is in line with expectations,” Eric Xu, Rotational Chairman of Huawei, said in a statement.
“Our hardware business continued to slow down, and our ICT infrastructure business maintained steady growth,” Xu said.
As a supplier of networking equipment, phones and other modern equipment, Huawei has struggled in the wake of a crackdown by former US President Donald Trump’s administration fueled by cybersecurity and espionage concerns.
President Joe Biden’s administration has ramped up pressure with the US chip law, which threatens Huawei’s access to global semiconductor supply chains.
Meanwhile, fifth generation (5G) wireless network technology has been banned by major economies including the United States, Britain and Japan due to security concerns.
The company said on Thursday that the profit margin for its main business in the January-September period was 6.1 percent, without disclosing its net profit margin of 10.2 percent in the first three quarters of 2021.
The 2.2 percent decline in revenue in the first three quarters is much smaller than the 32 percent decline in revenue recorded in the same period last year, showing a slowing downturn.
– External ‘uncertainty’ –
The company’s smartphone sales have been declining in recent years after the United States cut off Huawei from key parts and banned it from using Google’s Android services.
It introduced its own Harmony operating system, which is now used on 300 million Huawei devices mostly in China.
A Huawei spokesperson said Thursday that the company is looking to focus on other devices.
It has expanded its business and cloud computing, designing software and components for “smart” cars.
“Although there are uncertainties in the external environment, such as Covid-19 and changes in the industry, we remain confident in our ability to achieve our business targets for 2022,” the spokesperson said.
Huawei is not publicly listed and its accounts are not subject to the same scrutiny as publicly traded companies.
Last year, Huawei posted a record profit of 113.7 billion yuan despite declining revenue, which the company attributed to “more efficient internal operations”.