Huawei Revenue drops down by 30% – All Thanks to US Sanctions

Huawei Technologies Co Ltd (HWT.UL), a Chinese telecoms equipment giant hit by US sanctions, expects sales to drop about 30% in 2021 and expects more hurdles in the coming year.

Rotating chairman Guo Ping stated in a New Year message to staff on Friday that revenue for the year will be 634 billion yuan ($99.48 billion).

Revenues of 891.4 billion yuan in 2020 fell by 28.9%.

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Next year “will bring its fair share of obstacles,” according to Guo, but he is pleased with Huawei’s commercial performance in 2021. “An unstable business environment, the politicization of technology, and a growing globalization movement all present severe concerns,” according to the letter, which was posted on the company’s website.

The Donald Trump administration in the United States slapped a trade ban on Huawei in 2019, claiming national security concerns, prohibiting the company from utilizing Alphabet Inc’s (GOOGL.O) Android for new handsets, as well as other vital U.S.-origin technologies.

Huawei was hampered by US sanctions, as well as lower domestic consumption caused by the coronavirus. “We must stick to our approach and react intelligently to external circumstances beyond our control,” Guo remarked.

Huawei will continue to focus on ICT infrastructure and smart products, according to the letter.

According to Huawei’s latest earnings report, revenue plummeted 38% year over year in the third quarter. Revenue fell by over a third in the first three quarters compared to the same period last year.