Huawei reports small increase in FY sales, profit despite US sanctions

Nieuws Algemeen Wereld 31 MAR 2021
Huawei reports small increase in FY sales, profit despite US sanctions

Huawei managed to grow its sales and profits in 2020 despite the US government restrictions on the company. The company said turnover reached CNY 891.4 billion (USD 136.7 billion) last year, up 3.8 percent, and net profit rose 3.2 percent to CNY 64.6 billion.

The figures suggest growth slowed considerably in the fourth quarter after new sanctions took effect in September. Operating cash flow was down 61.5 percent year-on-year to CNY 35.2 billion, and Huawei ended the year with total cash and short-term investments of CNY 357.4 billion, down 3.7 percent. 

While the smartphone business was largely forced to a standstill due to the restrictions on American suppliers, Huawei still managed to grow its consumer revenues, by 3.3 percent to CNY 482.9 billion. The enterprise business grew the most, up 23.0 percent to CNY 100.3 billion, while carrier networks rose just 0.2 percent to CNY 302.6 billion, supported by 5G expansion in China.

Its home market China made up two-thirds of sales in 2020, with revenues there growing by 15.4 percent to CNY 584.9 billion. Revenues were down in the rest of the world, led by a 24.5 percent fall in the Americas to CNY 39.6 billion. In the EMEA region, Huawei's annual sales fell by 12.2 percent to CNY 180.8 billion, and revenues in Asia Pacific dropped 8.7 percent to CNY 64.4 billion in 2020. 

After losing access to the Android platform, Huawei launched its own HarmonyOS and the Huawei Mobile Services (HMS) ecosystem to support its consumer devices. The company said HMS is already the world's third-largest mobile app platform, with more than 120,000 compatible apps and 2.3 million registered developers. The latest HarmonyOS 2.0 release expands support to IoT devices running 128 KB to 128 MB RAM. 

Its other new growth platform in the past year is the Huawei Cloud, as it seeks to compete in the enterprise market with the likes of Google and IBM. Over 220 services have been launched on the platform, and over 4,000 third-party applications are available on the Huawei Cloud Marketplace. Huawei has expanded the cloud platform to 45 availability zones with partners in 23 regions around the world.

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Algemeen

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Google,  Huawei

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Wereld

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Devices, Financial figures

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