Under Donald Trump US embargo Faced with the problem, Huawei could not use Google services on its new phones, and could not supply parts from many companies. For this reason, it has developed its own solutions and operating system, especially the application store, as an alternative to Google services. Although Huawei continues on its way with its own solutions, the impact of the embargo on one of the largest phone manufacturers, by the world’s most developed country, was of course huge.
Donald Trump’s administration, which is not limited to imposing an embargo in its own country, has described Huawei as a national security threat and urged other countries not to use Huawei products in 5G telecommunications equipment. If it’s Huawei allegation of national threat repeatedly refused.
The Russian manufacturer, whose Android license was revoked, found the solution in Huawei
Russian smartphone maker BQ turned to Huawei’s mobile operating system HarmonyOS after its Android license was revoked.
2021 for Huawei: Annual revenue down, net profit up!
Huawei released its 2021 report at a press conference today. Thus, the effects of the pandemic and the US embargo on the company were revealed. Huawei in 2021 (636.8 billion yuan) with a decrease of 28.5% compared to the previous year. $99.9 billion in revenue achieved.
Even though the company’s revenues fell sharply, its net profit increased 75.9 percent to 113.7 billion yuan. Huawei is not a public company, so it does not undergo the same audits as companies on the stock market.
Huawei CFO Meng Wanzhou said in a statement, “Despite the revenue decline in 2021, our ability to generate profits and generate cash flow is increasing and we are more capable of dealing with uncertainty.” he said.
This was recorded as the first income decline since 2002. It was stated that US sanctions, supply problems and decreased 5G demand in China were the main reasons for this revenue drop.
Due to the embargo, the revenue of the consumer segment, which includes smartphones and other products, decreased by about 50 percent. In terms of telecommunication teams, 281.5 billion yuan revenue was achieved with a decrease of approximately 7 percent.
The Chinese technology giant spent 142.7 billion yuan on research and development processes, namely R&D operations, in 2021. While this corresponds to 22.4 percent of total revenue, the company’s budget allocated to R&D expenditures in the last 10 years has exceeded the level of 845 billion yuan.