A very strong competitor for companies like Apple and Samsung in the smartphone industry a few years ago, Huawei had to contend with devastating sanctions that grew like a snowball after being blacklisted by the US.
The company, which faced many sanctions such as banning the sale of its products in the USA, losing Google support, and preventing the country from using its components, recently shared its financial report covering the first three quarters of this year. Here is the latest situation…
Another blow to Huawei from the USA!
The war between the USA and Huawei has entered a new dimension. With the last bill passed, the attitude towards Huawei has become even more rigid.
Huawei announced the nine-month financial report!
Huawei announced its total sales revenue and net profit margin for the first three quarters of 2021. The situation is not encouraging for the company, which is struggling with the pandemic and the global chip crisis as well as sanctions.
According to the published report, Huawei achieved a total sales revenue of 455.8 billion yuan in the 9-month period, and $71.3 billion when converted into dollars. The net profit margin was 10.2%.
Guo Ping, the company’s rotating chairman, stated that the financial data for this period is in line with Huawei’s expectations. He added that for many reasons, the consumer side of the brand has taken a significant hit, but its commercial operations have remained stable for now.
On the other hand, stating that they will invest more in research and development to further increase Huawei’s operational efficiency and continue to strengthen technological innovation, Ping also expressed his gratitude to the company’s loyal customer base and partners.
Although the positive statements are more prominent in the report, the large decrease in the data obtained is remarkable when the data obtained are compared with the data of the previous year. Because sales revenues, which were $1.04 trillion in the first nine months of 2020, declined by 32 percent to $71.3 billion in the same period of 2021.
Finally, it should be noted that the company does not expect a very good picture in the future. As it will be remembered, the draft law that will prevent blacklisted companies such as Huawei from obtaining new equipment licenses from regulatory bodies has been approved recently in the USA. The bill, which is currently waiting for Joe Biden’s signature, is expected to be implemented soon.