Chinese tech giant Huawei Technologies shared an estimate on Friday that predicted its earnings would remain flat in 2022. This has halted the decline in sales experienced by Huawei and other Chinese companies, despite mounting sanctions against China and Huawei in particular.
Though Huawei is nowhere near its 2019 peak of $122 billion, it continues to make big bucks despite US-imposed sanctions and trade embargoes by several other countries. Photo credit: AFP
In fact, Huawei’s revenue grew just 0.02 percent this year. And despite the rotating chairman, Eric Xu struck an upbeat tone in the company’s annual New Year’s letter announcing the figure.
“US restrictions are now our new normal and we are back to business as usual,” Xu wrote in the letter, which was addressed to staff and shared with the media.
Revenue for the year is expected to be 636.9 billion yuan, or $91.53 billion, according to Xu.
That’s a tiny increase from 2021, when sales reached 636.8 billion yuan and marked a 30 percent drop in sales from a year earlier, when US-imposed sanctions on the company took effect.
The timing and content of Xu’s letter were somewhat unusual. First, the letter or statements made did not mention Huawei’s profitability, whether it had been growing or declining. Second, the company typically releases its full annual results in the first quarter of the following year, which means that it used this special opportunity to announce its results as a precaution.
Things haven’t fully returned to normal for Huawei, however. Revenue for 2022 still fell well short of the company’s record $122 billion set in 2019. In 2018-2019, the company was at its peak as the world’s leading Android smartphone vendor.
In 2019, citing national security concerns, the US administration led by President Trump imposed a trade ban on Huawei that prohibited the company from using Google’s Android operating system in its new smartphones. Huawei has basically been cut off from using some seriously other critical and crucial technologies that originated in the US.
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