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Huawei is really struggling

Chinese maker Huawei has reportedly gone on to report a 16.5% decrease in revenue as far as the first quarter of this year goes – this being in comparison with its performances that were showcased last year. Of course the brand has significantly been affected by the sanctions which have been placed by the US which meant that Huawei had to redirect its overall business strategy and also led to the sale of its highly productive arm in Honor in November of last year.

The brand proceeded on to report a revenue of about $23.46 billion for Q1 of 2021 – this figure being less than the corresponding tally for Q1 of last year – although the net profit did end up growing by 3.8% to 11.1% in comparison to last year. The increase in the net profits was as a result of cost-cutting strategies implemented by the company as well as a massive $600 million coming in courtesy of royalty payments within the quarter.

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Huawei does however claim that the outlook actually looks bright due to its refined business strategy in order to cope with the US sanctions. In order to counter such legal implementations, the brand has had to diversify to some other areas as well as seek alternative strategies in order to cope with the US blacklist which also impacted its developmental strides especially in terms of 5G technology, where the company remains as a leader even with the drawbacks that have come forth due to the US blacklist.

The company’s smartphone business though did indeed take a major hit in the aftermath of the US chip blacklist, and this was the reason why it had to sell its smartphone arm in Honor back in November. The company was also subject to restriction from accessing supplies from its US suppliers – this leading to stalling of its rollout of market-leading next generation technologies.


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