Chinese tech company Huawei Technologies has reported a drop in revenue of 28.56 percent for last year. The company is still battling crippling sanctions by the US government due to security reasons. However, Huawei will now focus on other opportunities, including digitalization and carbon-neutral businesses.
Total revenue in 2021 was 636.9 yuan or $100.01 billion. This was lower than the 891.4 billion realized in 2021. Profits, however, went in the opposite direction, rising by 75.9 percent to 113.7 billion or $17.86 billion.
The current chairman of Huawei, Guo Ping, said the carrier business had stabilized while its enterprise business grew steadily. He also said the consumer business had transitioned to a new domain.
Making her first public appearance after returning from Canada, Meng Wanzhou, CFO, commented that Huawei had grown more capable of dealing with uncertainty even though it experienced a drop in revenue.
Huawei has attributed the loss of revenue to the paralyzed smartphone business. However, Richard Yu, Huawei’s president of device business, said the US sanctions would not prevent the company from pursuing innovations. It would focus on areas like the smart home, smart mobility, entertainment, etc.
The Chinese company has been trying to replace Google’s Android OS on its smartphone after the ban prevented Google from continuing to do business with Huawei. Known as HarmonyOS, Huawei released an update in the middle of last year. The OS powers phones, smartwatches, and tablets.
Huawei reported that its connected devices business grew by 30 percent last year. The section handles wearables and smart screens. It also managed to release smartphones last year, including a new foldable device, the P50 Pocket.
Sales dropped outside China across all its portfolios, although overseas sales still contributed more than 50 percent of its carrier business revenue.
The profit bump was due to the sale of its Honor phone brand and server business. Henan Information Industry bought the latter in November 2021. However, Huawei did not provide much details about the two sales.
However, Huawei claims its profit rose even when the business sales were ignored.
On the company’s prospect, the spokesperson said Huawei would readjust its portfolio to reflect digitalization and carbon neutrality. “We will focus on connectivity, computing, devices, intelligent automotive components, cloud, and digital power, and work to create thriving OpenHarmony, openEuler, and MindSpore ecosystems.”
Huawei will collaborate with its partners to achieve these goals. It will also step up investments in system architecture optimization, software performance improvement, and ‘theoretical exploration.’
CEO Ren Zhengfei revealed Huawei is already working on 6G connectivity. “We must not wait until 6G becomes viable, as waiting would impose constraints on us due to a lack of patents.”
The Chinese conglomerate has 86 tech labs scattered across the world and 23 R&D centers in Europe. A total of 142.7 billion yuan or $22.41 billion went into R&D last year, a 30 percent increase. That was nearly a quarter of its revenue for the year. In the past ten years, Huawei spent 845 billion on research.