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Sales in Chinese technology giant Huawei, which American officials see as a national security threat and are stubbornly trying to weaken, are falling rapidly.
The company said on Friday that its shrinking smartphone business had caused its total revenue for the first half of the year to drop to nearly $50 billion, down nearly 30 percent from last year. But the net profit margin improved to 9.8 percent from 9.2 percent last year.
As a close company, Huawei is not legally required to report earnings. It only publishes a small selection of financial results, not quarterly.
“Our goal is to survive and to do it sustainably,” Eric Xu, vice president of Huawei, said on Friday.
Over the past few years, Huawei’s ability to work with the international computer chip industry has shrunk due to a set of rules imposed by the Trump administration. The company’s production became extremely difficult. high end phones that made him a spherical Goliath long ago. Huawei denies that its products threaten the security of any country.
US sanctions also prevent Huawei devices from running Google’s most popular apps. This has been driving customers away from outside of China for some time now.
But even in China, where many Google apps have long been blocked, Huawei’s mobile phone business is sinking fast. According to market research firm Canalys, in the last quarter, for the first time in more than seven years, Huawei wasn’t one of the five best-selling phone brands in China. The top five were Vivo, Oppo, Xiaomi, Apple and Honor, respectively.
Honor was a Huawei brand. jumped out To take it out of reach of US restrictions late last year. A company spokesperson said this contributed to the decline in Huawei’s smartphone revenue.
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