As its economic situation deteriorates, Huawei believes that its “objective is to survive”. The Chinese giant’s turnover fell 38% in the second quarter, largely due to US sanctions.
Huawei is not doing very well and it is enough to take a look at the situation of the smartphone market to be convinced of this. Long a symbol of Chinese success internationally, this giant had made an impression by seizing the chair of world leader ahead of the South Korean Samsung and the American Apple. A short-lived success for Huawei, who already knew that his situation was going to deteriorate sharply. Blacklisted by Washington, the group has been facing trade sanctions for many months against a backdrop of rivalry between China and the United States. Suspected of potential espionage for the benefit of Beijing, Huawei recorded a 38% drop in turnover in the second quarter. Published on Friday, these financial results show a 29% drop in turnover for the first half, to 320.4 billion yuan (42 billion euros).
The results of the Shenzhen giant remain significant, but this announcement contrasts with its insolent success in recent years. Its consumer business, which includes smartphones and other consumer products, saw sales fall 47% year-on-year to 135.7 billion yuan (17.8 billion euros). Performs “Compliant with scammers” of Huawei which must refocus on certain sectors such as software, even if it has just unveiled the P50 and P50 Pro. In addition to mobiles, the firm was also unable to take advantage of its equipment supplier activity to revive itself. Geopolitical tensions have indeed pushed many countries to boycott Huawei or give it a limited role.
Huawei will have to “survive” before “daring to dominate the world”
As Huawei founder and CEO Ren Zhengei called on the firm’s employees to “dare to dominate the world”Eric Xu wants to be more cautious. “We have set our strategic objectives for the next five years. Our goal is to survive, and to do so sustainably. We will achieve this by delivering tangible value for our customers and partners. Despite a drop in revenue from our consumer business, caused by external factors, we are confident that our network and enterprise businesses will continue to grow steadily., explains the rotating president of Huawei. Note that the French branch does not mention the notion of “survival” in its press release and translates the speech of its president by “our objective remains to install Huawei over the long term”.
Deprived of Android and Google applications, banned from the 5G market in some countries, Huawei is recording the worst drop in revenue in its history and is effectively in a “survival” situation.