Here’s how American pressure sinks Huawei’s 2021 accounts
What happens to the balance sheet of the Chinese giant Huawei
Huawei records its first annual sales decline in 2021 due to U.S. trade forcing.
This year, the Chinese telecom giant's revenue fell 29% year-on-year to 634 billion yuan ($ 99.5 billion). This was announced by the same company. As the Guardian points out, “Huawei is suffering from the effects of the crossfire of the commercial and technological rivalry between the United States and China, with the administration of the then President Trump having moved to limit the expansion of Huawei for fears that it could threaten. a threat to IT security ".
The Chinese group is the world's largest supplier of telecommunications network equipment. It was also one of the top three smartphone manufacturers along with Apple and Samsung. But it fell well below the smartphone rankings due to pressure from the United States.
The effects of the US-China trade war felt by telecommunications were "in line with our forecasts," President Guo Ping said in the message for the new year.
All the details.
THE FORECASTS OF HUAWEI
The Chinese telecom giant said on Friday that its annual revenue was down by nearly a third from the previous year.
Huawei's revenue fell 29% to 634 billion yuan, or about $ 99 billion, for the year, the company said.
"An unusual full-year drop in revenue for the once booming tech company," notes The Wall Street Journal.
THE CLOSE TO STARS AND STRIPS
The US has prevented Huawei from acquiring crucial components such as microchips.
The US Department of Commerce has in fact included Huawei in the list of entities banned in May 2019 . This means that American companies cannot do business with Huawei. Rather, they can only trade with it if they get special permission from the Trump administration.
Not to mention that Huawei had to develop its own operating system since Washington prevented Google's Android operating system from being implemented on Huawei smartphones.
THE SALE OF HONOR
Additionally, Huawei's revenue declined in 2021 due in part to the sale of its budget phone brand Honor, which was sold late last year.
Last year, the company got rid of the Honor brand, a youth-oriented and cheaper brand of smartphones and other tech products, along with its R&D division and supply chain management activities.
HOW HUAWEI TRIED TO CIRCULATE US SANCTIONS
American sanctions forced Huawei to diversify into other sectors, such as electric vehicles.
Not only that, the Chinese giant has also dedicated itself to corporate computing, wearable devices and healthcare technology.
"In an effort to salvage its smartphone business, it also found a way around US sanctions, namely by licensing its phone designs to Chinese third parties to gain access to critical US chips," Startmag recalls . .
GUO FORECASTS
Finally, Chinese society remains optimistic.
“In 2021, despite all the trials and tribulations, we worked hard to create tangible value for our customers and local communities,” Guo said.
"We have improved the quality and efficiency of our operations and expect to close the year with total sales of 634 billion yuan." He added that the segment of telecommunications carriers has "remained stable" and that "the overall performance is in line with our forecasts".
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/innovazione/ecco-come-le-pressioni-americane-affondano-i-conti-huawei/ on Fri, 31 Dec 2021 12:23:50 +0000.