Huawei’s smartphone enterprise has struggled underneath U.S. sanctions that prohibit it from shopping for chips and different parts from key suppliers.
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BEIJING — Chinese language telecommunications big Huawei introduced Thursday that first quarter income fell by practically 14% from a yr in the past, whereas its revenue margin greater than halved.
“Our shopper enterprise was closely impacted, and our [information and communications technology] infrastructure enterprise skilled regular progress,” Ken Hu, Huawei’s rotating chairman, stated in a press release. “In 2022, we nonetheless face a difficult and complex enterprise atmosphere.”
The corporate reported 131 billion yuan ($20.63 billion) in income for the primary quarter. That is down by 13.9% from the identical interval final yr, and a greater than 27% decline from the fourth quarter of 2021.
First quarter revenue margin of 4.3% was lower than half the 11.1% reported a yr earlier.
Hu stated the quarterly outcomes have been in keeping with the corporate’s expectations and that Huawei has elevated its funding in analysis and improvement.
Huawei’s smartphone enterprise has struggled underneath U.S. sanctions. The Trump administration put the corporate on a blacklist that restricts it from shopping for essential parts reminiscent of superior semiconductors from U.S. suppliers.
Smartphone gross sales in China throughout totally different manufacturers fell by 14% within the first quarter from a yr in the past, in accordance with Counterpoint Analysis.
Huawei logged the worst decline out of seven manufacturers, rating sixth by market share and with gross sales plunging by 64.2% from a yr earlier, the report confirmed. The corporate’s smartphone gross sales in China additionally fell by 12% from the prior quarter.
Apple was the one different firm on the record to publish a quarter-on-quarter gross sales decline in China, down by 23%, in accordance with Counterpoint. Nevertheless, the iPhone maker’s China gross sales nonetheless grew by 4.4% within the first quarter from a yr in the past.
Seeking to different companies
Huawei has emphasised hiring expertise and developing other business lines to counter the impression of falling smartphone gross sales.
Specifically, whereas the corporate stated it is not going to construct its personal automobiles, Huawei has entered the new electrical automotive market by incorporating its HarmonyOS working system and different know-how into automobiles manufactured by conventional Chinese language auto manufacturers.
Rotating chairman Hu stated earlier this week that not less than two extra automotive fashions utilizing Huawei know-how could be launched this yr. The primary automotive to make use of HarmonyOS was the Aito M5, which began deliveries earlier this year.
Huawei stated its analysis and improvement workforce for good autos has reached 5,000 folks, and that the corporate’s funding in auto tech-related operations reached $1 billion final yr.
