Tech

Huawei’s sales tumble as phone buyers flee the Chinese giant.

Huawei’s sales tumble as phone buyers flee the Chinese giant.
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Huawei’s sales tumble as phone buyers flee the Chinese giant.

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.

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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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