Huawei's revenue extend decline in first quarter as telecoms giant struggles under US sanctions
- In the first quarter, Huawei recorded US$19.86 billion in revenue, with a net profit margin of 4.3 per cent
- Huawei is betting on sectors that are less reliant on US technologies, such as smart vehicle systems for carmakers and enterprise services
The decline, however, marked a deceleration from the 28.6 per cent drop in full-year revenue for 2021.
In the first quarter, Huawei recorded 131 billion yuan (US$19.86 billion) in revenue, with a net profit margin of 4.3 per cent, the Shenzhen-based company said on Thursday.
Huawei is a privately-held company, but it releases financial statements on a regular basis.
The telecoms giant is struggling to diversify its revenue sources after US sanctions restricted its access to advanced chips, crippling the company’s once-lucrative smartphone business. Meanwhile, Huawei has reportedly put some operations in Russia on hold to minimise risks of “secondary sanctions”.
Huawei’s operations are still under scrutiny by the US government. The Financial Times reported on Wednesday that Washington is looking into claims that Yangtze Memory Technologies Co, a Chinese semiconductor maker, supplied chips to Huawei in a potential violation of US export controls.