Categories: Market Overview

Huawei reports 16.5% drop in revenues in first quarter, warns of ‘another challenging year’ ahead

Chinese tech giant Huawei said Wednesday that its revenues dropped sharply in the first quarter as U.S. sanctions took a toll on its business. Huawei’s revenues fell 16.5% year-on-year to 152.2 billion Chinese yuan ($23.5 billion) in the three months ending March 31, according to unaudited financial results revealed by the company on Wednesday. It marks the second consecutive quarter in which Huawei’s revenues declined. This was largely down to pain in Huawei’s consumer business, which includes smartphones and other devices. Huawei hasn’t been able to ship its phones with Google’s licensed Android operating system since the companies parted ways in 2019. Huawei’s smartphone shipments plunged 41% in the fourth quarter of 2020. The company sold its Honor budget smartphone brand to a consortium of investors last year.

In 2019, Huawei was added to a U.S. trade blacklist called the Entity List which restricts American firms from exporting technologies to certain foreign entities. And in 2020, the U.S. moved to cut Huawei off from key chip supplies it needs for its smartphones. Huawei said it actually managed to increase its profit margin by about 3.8 percentage points year-on-year to 11.1%. This was in part down to the $600 million Huawei received in patent royalties in the quarter.

In March, Huawei said it would begin charging smartphone makers a royalty to use its patented 5G technology. Huawei has thousands of declared 5G patent families, and the company is hoping this part of its business can provide it with a new revenue stream as other parts of its business falter.

Huawei reports 16.5% drop in revenues in first quarter, warns of ‘another challenging year’ ahead, CNBC, Apr 29

The FxPro News Team

This team of professional journalists announces the most interesting and influential articles from the major financial media as a brief summary. All such news may have sufficient potential to affect the course of trading assets.

Share
Published by
The FxPro News Team

Recent Posts

Nasdaq 100 Wave Analysis 23 December 2024

- Nasdaq 100 reversed from strong support level 21000.00 - Likely to rise to resistance…

6 hours ago

USDJPY Wave Analysis 23 December 2024

- USDJPY reversed from key support level 156.35 - Likely to rise to resistance level…

6 hours ago

US indices: has the bullish trend broken?

The recent declines in US indices may have broken the bullish trend, indicated by technical…

11 hours ago

Dollar: Slowing Momentum, Same Direction

The dollar has paused its strengthening, as weaker-than-expected inflation data reduces fear of future Fed…

15 hours ago

Bitcoin Fell Back to Local Support

Bitcoin finds support near the 50-day moving average, but further declines in the stock market…

16 hours ago

EURCHF Wave Analysis 20 December 2024

- EURCHF falling inside minor impulse wave 5 - Likely to fall to support level…

3 days ago

This website uses cookies