A Huawei store in Hangzhou displays the company’s newly launched foldable smartphone, the P50 Pocket, on December 23, 2021.
Long Wei | Visual China Corporation | beautiful pictures
BEIJING — Chinese telecommunications giant Huawei said on Friday that it expects revenue this year to hit 634 billion yuan ($99 billion), down 28.9 percent from a year ago.
The company has suffered from US sanctions, a shortage of semiconductors and a drop in global demand for smartphones.
Full-year estimates for 2021 show that Huawei’s revenue for the second half of the year fell year-on-year to 313.6 billion yuan, from 320.4 billion yuan.
The company reported revenue of 891.4 billion yuan in 2020, up 3.8% year-on-year. This is much slower than the 19.1% year-on-year increase reported for 2019, with 858.8 billion yuan in revenue.
Friday’s announcement came as part of an internal New Year’s message from Huawei Rotating Chairman Guo Ping, who focused on rallying employees to apply pressure.
The letter did not specify the reason for the expected drop in revenue, but noted “serious challenges” from the “unpredictable business environment, the politicization of technology and the de-globalization movement.” increasing,” according to an English-language edition of CNBC.
Guo added that “this year, our carrier business has remained stable, our enterprise business has grown steadily, and our equipment business has expanded rapidly.” expand into new business areas.”
For the next year, Guo said the company’s goals include increasing efforts build and attract talentand develop automotive-related technologies.
Last week, Huawei announced The first electric car with HarmonyOS is likely to start shipping at the end of February.
Huawei usually releases a more detailed annual report in March.
The figures published in the first half of 2021 show that the two largest business segments, consumers and carriers, both declined sharply compared to the same period last year. The business is much smaller, has become at the heart of Huawei’s growth strategy, an increase of 6.6 billion yuan.
In 2019, the administration of former President Donald Trump put Huawei on a blacklist that restricts US companies from selling technology to the Chinese company, citing national security concerns. Huawei has denied it poses such a threat.
While those restrictions have yet to ease, other tensions between Huawei and the US government do.
Chief Financial Officer Meng Wanzhou, daughter of founder Ren Zhengfei, has returned to work at the company’s headquarters in Shenzhen. this fall after reaching an agreement with the US government on wire transfer fraud charges.
Meng has been fighting extradition to the United States from Vancouver, where she was arrested in December 2018. She has spent most of the past three years under house arrest, during which she 10 million Canadian dollars ($7.9 million) bail conditions allow her to go out during the day with security surveillance.
