Huawei Technologies has posted 29 percent drop in revenue at 320.4 billion yuan or $49.56 billion in the first half of 2021.
Revenue of Huawei’s consumer business group, which includes smartphones, fell 47 percent to 135.7 billion yuan in H1.
Huawei eked out a 0.6 percentage point rise in its net profit margin to 9.8 percent, largely due to efficiency improvements.
Huawei revenue in first half
Carrier business revenue — CNY136.9 billion
Enterprise business revenue — CNY42.9 billion
Consumer business revenue — CNY135.7 billion
The US sanctions have impacted Huawei’s smartphone business, with Huawei dropping out the top five phone vendors’ list in China for the first time in more than seven years this year, shipping just 6.4 million units, according to Canalys.
That compares with 27.4 million handsets shipped in China in the second quarter of 2020, excluding shipments of Honor budget handsets. Huawei was forced to sell the Honor brand in November.
“We’ve set our strategic goals for the next five years,” said Eric Xu, Huawei’s rotating chairman, in a statement announcing the results. “Our aim is to survive, and to do so sustainably.”
“Despite a decline in revenue from our consumer business caused by external factors, we are confident that our carrier and enterprise businesses will continue to grow steadily,” Eric Xu said in a statement.
The company started rolling out its Harmony operating system in June, meaning it is no longer wholly reliant on Google’s Android platform for its smartphone business and other related business areas, Reuters reported.
U.S. sanctions banned Google from providing technical support to new phone models.
First-half revenue from Huawei’s enterprise business group grew 18 percent to 42.9 billion yuan, as the COVID-19 outbreak created industry demand for ICT connectivity.
Huawei is also seeing strong growth in its cloud services business, more than doubling in size in the first quarter to take a 20 percent market share in China, according to Canalys.