BEIJING — Chinese language telecommunications big Huawei introduced Thursday that first quarter revenue fell by practically 14% from a 12 months in the past, whereas its revenue margin greater than halved.
“Our consumer business was heavily impacted, and our [information and communications technology] infrastructure business experienced steady growth,” Ken Hu, Huawei’s rotating chairman, mentioned in a press release. “In 2022, we still face a challenging and complicated business environment.”
The corporate reported 131 billion yuan ($20.63 billion) in revenue for the first quarter. That is down by 13.9% from the identical interval final 12 months, and a greater than 27% decline from the fourth quarter of 2021.
First quarter revenue margin of 4.3% was lower than half the 11.1% reported a 12 months earlier.
Hu mentioned the quarterly outcomes have been in step with the corporate’s expectations and that Huawei has elevated its funding in analysis and growth.
Huawei’s smartphone enterprise has struggled below U.S. sanctions. The Trump administration put the corporate on a blacklist that restricts it from shopping for important elements such as superior semiconductors from U.S. suppliers.
Smartphone sales in China throughout completely different manufacturers fell by 14% within the first quarter from a 12 months in the past, in keeping with Counterpoint Analysis.
Huawei logged the worst decline out of seven manufacturers, rating sixth by market share and with sales plunging by 64.2% from a 12 months earlier, the report confirmed. The corporate’s smartphone sales in China additionally fell by 12% from the prior quarter.
Apple was the one different firm on the record to publish a quarter-on-quarter sales decline in China, down by 23%, in keeping with Counterpoint. Nonetheless, the iPhone maker’s China sales nonetheless grew by 4.4% within the first quarter from a 12 months in the past.
Trying to different companies
Huawei has emphasised hiring expertise and developing other business lines to counter the impact of falling smartphone sales.
In particular, while the company said it will not build its own cars, Huawei has entered the hot electric car market by incorporating its HarmonyOS operating system and other technology into cars manufactured by traditional Chinese auto brands.
Rotating chairman Hu said earlier this week that at least two more car models using Huawei technology would be launched this year. The first car to use HarmonyOS was the Aito M5, which began deliveries earlier this year.
Huawei said its research and development team for smart autos has reached 5,000 people, and that the company’s investment in auto tech-related operations reached $1 billion last year.