Huawei has just delivered contrasting quarterly results, against a backdrop of US sanctions and the sale of its low cost brand Honor.
Honor's divestiture is hurting Huawei's finances. The Chinese giant's turnover amounted to 19.4 billion Euros in the first quarter of 2021, with operator-related activities remaining stable, while the consumer activities of the Shenzhen firm saw sales decline by made the sale of its low cost brand Honor, completed last year. While the company's turnover declined, its margin increased thanks to a royalty of 600 million dollars on patents, and to "continuous efforts to improve the quality of operations and the efficiency of management", says the company.
Huawei is now ready to turn its back on a new year that promises to be complicated due to US sanctions. "2021 will be another difficult year for us, but it is also the year when our strategy for future development will start to take shape," said Eric Xu, rotating president of Huawei. “Whatever challenges we face, we will continue to maintain our business resilience. Not just to survive, but to do so sustainably. "
Speaking through an interpreter at the company's recent analyst summit, the Huawei official said many other Chinese companies might fear what happened to Huawei with regard to US sanctions does not happen to them. He said he hopes Huawei suppliers can produce chips that are not subject to US intervention.