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US sanctions failed to stop Huawei. But the company’s growth has slowed
23.10.2021 [11:15],
Gennady Detinich

Despite all the demonstrated bravado and declared resilience, Huawei is increasingly bogged down in the swamp of sanctions by the US authorities. Whatever Huawei’s management says, the numbers in the quarterly reports speak for themselves. And they say that after last year’s imposition of sanctions, the rate of increase in revenue and the company’s profitability have been steadily declining and this process is gaining momentum.

Image source: gizchina.com

In today’s report for the third quarter of calendar year 2021, Huawei reported that its revenue was 217.3 billion yuan ($ 31.91 billion). This is only 3.7% more than she earned in the same period last year (209.5 billion yuan).

The negative trend is best traced when comparing the results for the first nine months of 2021 and 2021. So, if in 2021 from January to September inclusive, Huawei gained 610.8 billion yuan, then this year for the same period, revenue amounted to 671.3 billion yuan ($ 98.57 billion). Thus, the increase in revenue this year amounted to only 9.9%, whereas a year ago this figure increased by 24.4%.

Another measure of Huawei’s economic performance also speaks for itself. The company’s business profitability for nine months of this year averaged 8%. Last year it was more – 8.7%. Costs rise, while revenue and profits decline.

The company does not disclose positive directions in its business. But earlier this year, she reported that activities in the consumer segment, in particular in the smartphone market, did not reflect the company’s goals. In 2021, for example, from a business in the consumer segment, Huawei did not receive the $ 12 billion in revenue it was counting on.

However, the domestic market of China is still well received by Huawei products, in contrast to the international market, where the company was greatly damaged by the breakdown of relations with Google and the loss of access to its services. A new test for Huawei was the ban on receiving products from the Taiwanese company TSMC. So far, there is still a small chance that the US will allow TSMC to cooperate with Huawei, possibly with some restrictions. But if this does not happen, then the company will be very bad.

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