While Huawei saw its revenues drop drastically in 2021, the Chinese manufacturer can boast of posting record profits for the same year. Unsurprisingly, the sale of certain activities such as its Honor subsidiary or its x86 server division enabled Huawei to save the day.
Since 2019, Huawei has had to deal with drastic American sanctions, which in particular prevent it from accessing the technologies of certain large companies in the country such as Google. Because of these measures, Huawei lost the enjoyment of its Android license and found itself deprived of access to Google services, such as YouTube, Gmail, Google Drive and others.
A short time ago, the Shenzhen firm took stock of its results recorded in 2021. Unsurprisingly, the brand is paying the price for the sanctions decreed by the Trump administration and maintained by that of Joe Biden: the figure of business fell by 28.56% in 2021 to reach 636.8 billion yuan, or nearly 88 billion euros. However, Huawei can boast of posting excellent net profits for the past year.
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Huawei: falling revenues, but exploding profits
As we learn from our colleagues on the TechRadar site, Chinese giant’s profits jumped 75.9%, to reach 16.27 billion euros. A performance made possible by the strong demand for telecommunications technologies by companies and the sale of assets in the segments most affected by US sanctions.
Thus, the sale of its Honor subsidiary has of course allowed Huawei to stay afloat, as has the separation of its x86 server division from Henan Information Industry Investment in November 2021. During a press briefing given a few days ago, the group’s rotating chairman Guo Ping said that his operator business was stable, while the firm’s Enterprise business recorded a “steady growth”.
In parallel, the financial director of Huawei Meng Wanzhou, back in China after his arrest in Canada, assured that the company was now “able to cope with uncertainty” thanks to the increase in its profits and cash flow. And this despite this significant drop in income in 2021. In addition, Huawei explains that it has redirected its research and development activities in other promising areas, such as electric and autonomous cars, the connected home and home automation, or even entertainment. Its investments in R&D have also increased by 30% to reach 22.4 billion dollars in 2021.or 22.4% of the company’s overall revenue.
Source: TechRadar
