Huawei sales tumble 16.5% in Q1 as Honor sale, US sanctions hit consumer business

Nieuws Algemeen Wereld 28 APR 2021
Huawei sales tumble 16.5% in Q1 as Honor sale, US sanctions hit consumer business

Huawei reported first-quarter sales down 16.5 percent year-on-year to CNY 152.2 billion. While its consumer business suffered from the sale of the Honor brand and US sanctions against the company, Huawei said it continued to grow in network equipment and also collected USD 600 million in patent royalties. Chairman Eric Xu said the company expects another challenging year in 2021, but was meeting its forecasts. 

In a short statement on the results, Huawei said its net profit margin was up 3.8 percentage points year-on-year at 11.1 percent, thanks to efficiency measures and the patent income. The company said it is ramping up investment in software engineering in order to grow further the share of software and services in its business. 

"As always, we remain committed to technological innovation and investing heavily in R&D as we work to address supply continuity challenges caused by restrictions in the market," said Xu. "We will continue making breakthroughs in basic science and pushing the frontiers of technology."

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