Huawei is still holding very strong despite the US sanctions against it last year according to its annual report and financial information for 2020. The report showed the impact of the sanctions on its business in 2020.
According to the report, while its revenue from North America and Europe fell significantly, its stronger performance in China saw it record higher sales and net profit than 2019. And since the company doesn’t reveal quarterly reports due to its unusual structure, its annual reports better reflect the health of the company.
In 2020, Huawei recorded a revenue of approximately $136 billion; representing a 3.8 percent increase from 2019. Its net profit increased by 3.2 percent to approximately $9.86 billion. 66 percent of the company’s sales happened in China in 2020, an increase from 59 percent in 2019. Meanwhile, its revenue in the Americas reduced by 24.5 percent.
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Huawei attributed the growth of its carrier business in China to a fast 5G rollout. China relies heavily on Huawei’s technology due to the absence of its primary rival, Nokia. Its 5G network deployment was also strong in Europe, the Middle East, and Africa, according to Huawei.
However, its sharp reduction in the Americas was attributed to “investment fluctuations in some countries’ telecoms markets”. Canada for example preferred Samsung over Huawei for their 5G rollout.
Huawei says its consumer division grew its revenue by 3.3 percent in 2020. In the final quarter of 2020 Bloomberg reports that Huawei’s quarterly profits shrunk year on year for the first time ever.
Despite a change in administration, Huawei doesn’t see a respite ahead. A Huawei executive said the company is yet to see any sign that the Biden administration might relax the US sanctions that were put in place under former President Trump.
“For the long run we believe this is damaging the reputation and also the competitive advantage of US industry,” the executive reportedly said.
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