Chinese telecommunications company Huawei has announced that it expects its revenue for the year 2021 to drop 28.9 percent from the previous year at 634 billion yuan or $99 billion. 2021 has been a tough year for the tech titan as a result of sanctions from the US, the chip shortage and a fall in the demand for smartphones globally.
According to estimates, the company’s revenue in the first half of the year stood at 320.4 billion yuan and went on to drop to 313.6 billion yuan in the second half. In 2020, Huawei reported revenue of 891.4 billion, up 3.8 from 2019.
The announcement that the company expects a fall in revenue for 2021 came in an internal New Year Message from the company’s Rotating Chairman Guo Ping. In the letter, the reasons for the expected drop in revenue was not mentioned but an English version of the letter did emphasize “serious challenges” from “an unpredictable business environment, the politicization of technology and a growing deglobalization movement”. The executive also added in the message that “this past year, our carrier business remained stable, our enterprise business experienced solid growth, and our device business expanded swiftly into new business domains”.
The company goals include increasing efforts to build up and attract talent and develop automotive-related technologies, Rotating Chairman Guo Ping added. This followed the company’s announcement of its first electric car with its HarmonyOS last week. The company may likely begin deliveries in late February or early March from all indicators.
The company’s troubles started after it got blacklisted during the Trump administration that was out to get Chinese companies on claims of threat to national security. The company, even though it denied the claims, is still blacklisted in the US. Its smartphones currently run on its own HarmonyOS as it can no longer use Google’s Android OS.
Although the company has been through thick and thin the recent years, it has managed to rise above the challenges and hopes to get back fully on its feet.
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Ibhadojemu Lucky Emmanuel is a graduate of Education and Economics from the University of Benin. He has a passion for tech and business and has been writing professionally for over a period of five years. He's written across various topics and segments and knew tech-business was it when he first stumbled on it. He has a great passion for music and arts, and wants to visit as many countries as he can someday.
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