Chinese company Huawei Technologies released its latest report today, posting the biggest drop in revenue ever. Revenue for the first half was $ 49.56 billion, down more than 29% over the same period last year. The fall was the result of US actions aimed at limiting Huawei’s access to key components of electronic devices. At the same time, the net profit margin improved from 9.2% to 9.8%.
Huawei attributed the decline in revenue to “externalities” that were hampering its once dynamic consumer electronics business. The company was the largest smartphone maker in the world back in the second quarter of last year, but has since dropped out of the top five.
Washington added Huawei to its trade blacklist in 2019, citing national security concerns. Since then, increasingly stringent measures have gradually cut the company off from the global supply chain, as its suppliers using any American technology must obtain US approval.
As a result, revenues for Huawei’s consumer electronics business fell almost 47%. Meanwhile, consumer electronics – mainly smartphones – accounted for over 50% of Huawei’s total revenue.
In the second key segment of activity – the production of telecommunications equipment – revenue decreased by 14%.
The business unit, which produces digital solutions for smart cities, financial, transportation, energy and manufacturing sectors, as well as for the education sector, was the only one in Huawei to report revenue growth year-on-year.
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