Huawei of China says sales increased in 2020 despite U.S. sanctions

Beijing (AP) — China’s high-tech giant Huawei boosted sales and profits last year, but smartphone units were hit by U.S. sanctions imposed in the fight against Beijing over technology and security. Later, he said growth had plummeted.

China’s first global technology brand reports that sales of telephones, network gear and other technologies increased 3.8% from 2019 to 891.4 billion yuan ($ 135.8 billion), down from 19.1% growth in the previous year. Did. This was driven by a 15.4% increase in China, but sales in other markets shrank.

Huawei Technologies Ltd. is struggling to maintain its global market after then-President Donald Trump blocked access to US processor chips and other technologies in 2019. Huawei was the best-selling smartphone brand in the second quarter of 2020, but dropped out of the top five in the world after losing Google’s music and other popular services.

“We have maintained a strong stance in the face of adversity,” Ken Fu said in a statement.

The results reflect the damage caused by US sanctions and show a future focused on China, where sales of networks and other products are not vulnerable to foreign pressure.

Huawei, which denies allegations of potential support for Chinese espionage, has sold a low-priced Honor smartphone brand in hopes of reviving sales away from parent company sanctions.

Huawei says it has a stock of US-made chips for high-end smartphones, but executives say they are in short supply. Last year, Mr. Trump extended sanctions by banning global suppliers from using US technology to manufacture chips for Huawei.

Economists and political analysts expect little change under President Joe Byden, who took over Trump in January.

Huawei founder Ren Zhengfei said the sanctions are unlikely to be lifted in February. Ren said the company could expand its focus on selling network technology to the mining and other industries.

According to Huawei, profits in 2020 increased 3.2% to 64.6 billion yuan ($ 9.8 billion), slowing from 5.6% growth in 2019.

According to the company, sales growth has been the weakest since the one-year contraction in the early 2000s after the tech industry was shaken by the crash of Wall Street Internet companies.

Sales of smartphones and other consumer goods increased 3.3% from 2019 to 48.7 billion yuan ($ 74.1 billion), accounting for 54% of total sales. This decreased from a 34% increase in 2019.

In February, the company unveiled a foldable smartphone with an 8-inch wide screen (20 cm wide), showing its technological prowess. However, the Mate X2 will only be sold in China, so there may be a shortage of processor chips for manufacturing.

In China, sales in 2020 were also hit by the coronavirus pandemic. Sales growth of 15.4% was less than half of 36.2% in 2019.

Network equipment sales to global telcos were flat at 302.6 billion yuan ($ 46.4 billion) after Washington pressured Europe and other allies to exclude Huawei when upgrading to next-generation technology. ..

A Chinese government spokesman has accused Washington of using fake security accusations to hurt emerging competitors.

The two governments, along with Canada, are involved in a diplomatic struggle over the arrest of Ren’s daughter Huawei executives in Vancouver. She is fighting a surrender to the United States on charges related to a possible violation of US trade sanctions against Iran.

Two former Canadian diplomats have been arrested in China and accused of spying, which is widely seen in an attempt to pressure Prime Minister Justin Tordo’s government to release Meng Yasen.

Huawei said it benefited from the increasing number of people working in remote areas due to the pandemic. Technology sales to manufacturers, healthcare and other companies increased 23% to RMB 103.4 billion ($ 15.4 billion), up from 8.6% in 2019.

Headquartered in a city in the south of Shenzhen, Huawei says it is owned by Chinese employees, who make up half of its employees. The company began reporting financial results 10 years ago to alleviate Western security concerns.


Huawei Technologies Ltd. :

Posted on