On Friday, Huawei Technologies, a major player in China’s electronics industry, released an estimate predicting a flattening of sales for the year 2022. This suggests that the sales fall that Huawei and other Chinese firms had been experiencing has levelled off, despite the escalating sanctions on China and Huawei in particular.
Actually, this year only saw a 0.02 percent increase in sales for Huawei. The statistic was revealed in the company’s annual New Year’s message, where rotating chairman Eric Xu sounded optimistic.
Xu told his employees in a letter that was later made public that “US limitations are now our new normal” and that business will resume as usual.
According to Xu, annual sales will total 636.9 billion yuan ($91.53 billion).
With the implementation of US-issued sanctions on the corporation, revenues fell by 30 percent from the previous year, to a total of 636.6 billion yuan in 2022.
The letter from Xu came at a strange time and contained some peculiar topics. To start, neither the letter nor the released statements mentioned Huawei’s profitability, or whether it had increased or decreased. The second is that the corporation has published its results ahead of schedule, as it generally does not release its entire yearly results until the first quarter of the following year.
The situation at Huawei is not quite back to normal yet. The company’s 2022 revenue of $98.2 billion was much lower than the $122 billion it earned in 2019. At its height in 2018–2019, the firm dominated the market for Android smartphones.
In 2019, the Trump administration in the United States slapped a trade restriction on Huawei, claiming national security concerns, which prevented the firm from utilising Google’s Android operating system for its new handsets. Huawei was essentially barred from adopting a number of other critically important technology with American roots.
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