Weighted down by US sanctions, the Huawei group has announced a drop in its annual turnover of nearly 30%. He says he is ready to face the challenges of 2022.
Huawei continues to blame. The Shenzhen firm unveiled its turnover for 2021 on Friday, and the least we can say is that it is down sharply, by 29% exactly. A direct consequence of the severe American sanctions, this drop is a real setback for the group which had, in 2020 and despite the measures, positive income.
A negative balance sheet in 2021, and challenges to be met in 2022
Huawei’s turnover in 2021 amounted to 634 billion yuan, or 87 billion euros, according to the rotating chairman of the Chinese group, Guo Ping. In 2020, the company had generated revenues of 891 billion yuan, or about 123 billion euros, for growth then measured at 4% compared to the previous year.
A year later, Huawei’s preliminary financial results confirm the fears of 2020, and the American sanctions which have now lasted since 2019, in addition to the Covid-19 pandemic. From now on, the Chinese market alone no longer helps Huawei to compensate for the losses suffered outside its lands.
So what is the short-term future for Huawei? Guo Ping, for his part, already warns that ” 2022 will have its share of challenges “. The boss of the group mentions ” unpredictable economic conditions, the politicization of technological issues and a growing movement in favor of de-globalization As potential obstacles.
The weight of sanctions
Huawei hasn’t had it easy lately. As confided to us last October in an interview with the number 2 company in France, Minggang Zhang, “ we have been under this embargo for more than two years, and there are “. The deputy general manager of Huawei France was obviously referring to the placement of the company on the American blacklist of companies that cannot acquire technologies from the United States, a measure still in force today under the Biden presidency.
For several months now, Huawei, which was briefly the world number one in smartphone sales, has lost access to global component supply chains and can no longer market Android products. The group is therefore trying to convince the Western public with its in-house operating system, Harmony OS. And if time will deliver its answers, the proposal “other” than Android or iOS still seems to put off a large part of consumers. Let us not forget either 5G, for which the company also suffers from numerous restrictions from an equipment supplier point of view, the American authorities considering that it uses fifth generation mobile technology for surveillance purposes on behalf of Beijing.
“ We must stick to our strategy and respond rationally to outside forces that are beyond our control. Guo Ping said. Huawei should focus its priorities on information and communications technology infrastructure, the famous ICT, as well as on connected objects.
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Source: Reuters
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