Huawei’s sales tumble as phone buyers flee the Chinese giant.
Sales are falling rapidly at Huawei, the Chinese tech titan that US officials see as a threat to national security and stubbornly seek to undermine.
The company said on Friday that the contraction in its smartphone business had dropped overall first-half revenue by almost 30% from a year ago, to around $ 50 billion. Its net profit margin, however, was 9.8%, down from 9.2% last year.
As a private company, Huawei is not legally obligated to report its profits. It only publishes a small selection of financial results, not on a quarterly basis.
“Our goal is to survive and to do so in a sustainable way,” Eric Xu, one of Huawei’s vice presidents, said in a statement on Friday.
In recent years, Huawei’s ability to work with the international computer chip industry has shrunk due to a series of rules imposed by the Trump administration. It has become extremely difficult for the company to produce the cutting edge phones that made it a global Goliath not too long ago. Huawei denies that its products threaten a country’s security.
U.S. sanctions also prevent Huawei devices from running Google’s most popular apps. This has driven customers out of China for a while.
But even in China, where many Google apps have been blocked for a long time, Huawei’s cellphone business is rapidly collapsing. Last quarter, for the first time in more than seven years, Huawei was not one of the top five best-selling phone brands in China, according to market research firm Canalys. The top five, in order, were Vivo, Oppo, Xiaomi, Apple, and Honor.
Honor was a Huawei brand until it was created late last year to put it outside of U.S. restrictions. This has contributed to the decline in revenue from Huawei’s smartphones, a company spokesperson said.
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