Huawei Technologies Ltd., China’s first global tech brand, has struggled since then-President Donald Trump blocked access to U.S. processor chips and other technology in 2019.
Chinese tech giant Huawei said Friday its revenue fell in the first half of 2022, but new ventures in autos and other industries helped to offset a decline in smartphone sales under U.S. sanctions. Revenue fell 5.9% from a year earlier to CNY 301.6 billion (USD 44.8 billion) in the six months through June 30, according to the company, the biggest maker of network gear for phone and internet carriers. It gave no profit but said its profit margin was 5%, which would be about CNY 15 billion (USD 2.2 billion).
Analyzing its newly released report, the first-half sales decline was an improvement over a 14% drop reported for the first three months of the year. The profit margin was wider than the first quarter’s 4.3%. Sales by Huawei’s device unit, which includes smartphones, fell 25.3% from a year earlier to CNY 101.3 billion (USD 15 billion). Sales of network equipment to telecom carriers and companies rose. Huawei reported a CNY 113.7 billion (USD 17.8 billion) profit last year but said revenue plunged 28.6% from 2020. Its auto venture has played a role in five models released by three Chinese automakers. Huawei supplies components and software for navigation, dashboard displays, managing vehicle systems and other services.
Huawei Technologies Ltd., China’s first global tech brand, has struggled since then-President Donald Trump blocked access to U.S. processor chips and other technology in 2019. The company denies American accusations it is a security risk and might facilitate Chinese spying. Huawei, headquartered in Shenzhen, near Hong Kong, has stepped up the development of network technology for autos, hospitals, mines and manufacturing. It says that is now less vulnerable to U.S. sanctions. Any measure that reduces global industry collaboration will greatly hinder scientific and technological innovation, Huawei said in a statement.