Chinese tech giant Huawei remains optimistic about the future despite the company’s declining revenue and the challenges of the new year.
Controversial Chinese tech giant Huawei Technologies Co Ltd. Projected sales to decline by around 30% in 2021 and expected more hurdles in the years to come, but at the same time, he seemed cautiously optimistic about his future.
According to reports, rotating chairman Guo Ping said in a New Year’s letter to staff on Dec. 31 that revenue for the year is expected to be 634 billion yuan ($ 99.48 billion), which is a decrease. by 28.9% compared to last year’s income of 891.7. billion yuan.
Guo said, “2022 will come with its fair share of challenges, but we will continue to work closely with our global partners to overcome the challenges we face, improve business performance and strengthen our foundations. “
Further, he wrote: “An unpredictable business environment, the politicization of technology and a growing de-globalization movement all present serious challenges.
The Donald Trump administration in the United States imposed a trade restriction on Huawei in 2019, citing national security concerns, banning the company from using Alphabet Inc’s Android for new handsets, as well as other technology vitals of American origin. The past 12 months have marked Huawei’s first calendar year since the United States adopted a comprehensive set of export controls.
The restrictions prohibit any company in the world from using US technology or components to supply Huawei or the companies that use or manufacture its products without an export license. The sanctions mainly affected the group’s consumer sector as Huawei is no longer able to obtain critical chips for its devices.
As the company, in response to the extreme measures, tried to boost other business areas such as cloud services and manufacturing of electric vehicle components, it split off from Honor, a smartphone brand, and quickly lost global market share to competitors like Apple and domestic brands like Oppo and Xiaomi.
According to Reuters, Guo said, “We must stick to our strategy and respond rationally to external forces that are beyond our control,” in the letter, which also noted that the Chinese telecommunications giant will continue to focus on technology. ‘information and communications or on ICT infrastructure, as well as smart products.
He also said that “our carrier business has remained stable, our corporate business has experienced solid growth, and our devices business has rapidly expanded into new business areas” – which include smart speakers, wearable devices, laptops and smart car equipment, reported Financial Time.
Huawei’s operating system, Euler, will be touted as the basis of a software ecosystem for digital infrastructures such as servers, according to the company. This is similar to Huawei’s efforts to improve Harmony, the company’s best-known operating system for devices like smartphones. Despite pressure from the United States, the double effort demonstrates the company’s commitment to remain a technology leader.
Additionally, in September, the Shenzhen-based company unveiled its 6G plans and said it intended to launch 6G products around 2030.
Guo wrote in the letter, “Reducing costs will not pave the way for sustainable survival. It is only through strategic investments that we can become stronger and build a future for ourselves. “