Huawei's 2021 annual results announced by the company It is a demonstration of the limitations of US official sanctions.
When the United States announced the enforcement ofSLOTorders around the world. The sale of advanced semiconductor chips is prohibited. which contains sensitive technology components sourced from the United States to Huawei two years ago, Paul Triolo, head of geotechnology. (geotechnology) at the Eurasia Group (Eurasia Group), a group of brains at the international level. Calling the move "the deadly blow to China's most important technology company" [1], he estimates it will have a devastating impact on every company's lines of business.
But in spite of this terrible expectation Huawei's 2021 annual financial report [2], which was announced at the end of March. Instead, it is reminiscent of writer Mark Twain's humorous sarcasm: "The coverage of my death is a huge exaggeration."
This is because Huawei is hampered by a ban on chip sales, "continuity challenges" and "continuity challenges" as well as the demand for 5G (next generation communications technology). 5) China is slowing down. The company's overall revenue has plummeted by 28.5%, from 891.3 billion yuan in 2020 to 636.8 billion yuan ($96.4 billion) in 2021, the first drop in revenue. of the Company since 2002 [3] according to various reports. which is published by Huawei itself
However, it appears that Huawei's net profit It jumped from 64.6 billion yuan in 2020 to 113.7 billion yuan ($17.22 billion) in 2021, a new record high. And it's soared to 75.9%. The company said this huge profit margin was a result of investments in innovation. Improving operational efficiency and rebalancing the company's product line. By turning to focus on business segments that are not affected by sanctions and can earn higher profits
Huawei's business, the part that felt the impact of the most severe chip ban is the smartphone business. According to data from research firm Dell'Oro Group, Huawei's share in the global market A sharp drop of 81.6% in 2021 [4] compared to the previous year. This left the company only 3% of the world market share, very far behind. from competitors such as Samsung, Apple, Xiaomi, Oppo or Vivo
Huawei ranked 3rd globally in mobile phone sales in 2020 [5], shipping 170 million mobile phones. Chips, which the company had collected in stock prior to the ban on the sale of chips, will come into effect. It's very delicious. At the end of 2020, Huawei split up "Honor" (Honor), a subsidiary that takes care of cheap mobile phones. Out to a separate company [6] The Honor also encountered an impact on the sale of smartphones as well.
