Huawei expects nearly 30% drop in 2021 revenue

Chinese telecommunications equipment giant Huawei, hit by US sanctions, expects 2021 revenue to fall nearly 30% and face challenges in the new year.

Revenue for the year is expected to be 634 billion yuan ($99.5 billion), rotating chairman Guo Ping said in a New Year’s letter to employees on Friday.

This represents a drop of 28.9% from 2020 revenues of 891.4 billion yuan.

Guo said that next year “will come with its fair share of challenges” but that he is satisfied with Huawei’s business performance in 2021.

“An unpredictable business environment, the politicization of technology and a growing movement towards deglobalization present serious challenges,” says the letter on the company’s website.

In 2019, the US Trump government imposed a trade ban on Huawei, citing national security, preventing it from using Android for its new smartphones, among other critical US-origin technologies.

US sanctions, along with weaker domestic consumption due to the coronavirus, weighed heavily on Huawei.

“We need to follow 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 infrastructure and smart devices, the letter says.

Third-quarter revenue fell 38% compared to the previous year, the balance sheet shows.

Reference: CNN Brasil

You may also like