Tech

Huawei with sales slump after US sanctions

The slump in sales at the Chinese Huawei group after US sanctions accelerated again. In the second quarter, the revenues of the network equipment supplier and smartphone provider fell by a good 38 percent to around 168 billion yuan (about 22 billion euros), according to semi-annual figures published on Friday. In the first quarter, sales had shrunk by 16.5 percent. “Our goal is to survive – and to do so sustainably,” emphasized Eric Xu, Chairman of the Board of Directors.

Due to US sanctions, Huawei lost access to important western technologies and could also be increasingly kept out of cellular networks . One of the reasons why the company was hoarding chips, which accelerated the semiconductor bottlenecks on the world market. Another big problem for Huawei is that the group cannot sell new smartphones with Google services – from cards to the Play Store app platform. As a result, Huawei phone sales plummeted outside of China.

The US accuses Huawei of close ties to Chinese authorities and warns of the danger of espionage and sabotage. The company rejects the allegations. The new US President Joe Biden initially left the sanctions imposed by his predecessor Donald Trump in effect while he ordered a general review of Chinese companies.

In the entire first half of the year, sales fell a good 29 percent to 320.4 billion yuan (just under 42 billion euros). The main reason for this was the consumer business, whose revenues plummeted by around 47 percent to 135.7 billion yuan. The network business shrank by 14 percent to almost 137 billion yuan. Eric Xu spoke of “external factors” that would have slowed consumer business. At the same time, he was confident that Huawei would grow again in network technology and in business with companies.


(vbr)

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