The Strategist

Huawei sales fall for second consecutive quarter


04/29/2021 - 03:40



Huawei's sales in the first quarter of this year fell 16.5 percent from the same period in 2020 to 152.2 billion yuan ($23.5 billion).



Matti Blume
Matti Blume
When publishing its financial statements, Huawei's management warned that the entire year of 2021 will be difficult for the company. It did, however, report that profitability rose 3.8 percent to 11.1 percent in the last quarter. The company did not disclose the net profit for the quarter and did not publish other financial indicators.

Behind the drop in sales are problems at Huawei's consumer products division, the most profitable division of the Chinese company. It continues to be affected by sanctions imposed by the US in 2019 and extended in the summer of 2020. 

Commenting on Huawei's reporting to South China Morning Post, IDC analyst Will Wong said: "The decline is in line with expectations, given the important role of the company's consumer business and how the US trade ban has affected smartphone sales globally. The current year will be crucial for the recovery, especially with the support of the automotive and cloud divisions, the huge size of the smart car market gives Huawei the opportunity to offset smartphone losses.

source: scmp.com




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