The China’s Huawei Technologies Co. reported a 38% fall in
quarterly revenue Friday, as the damage U.S. sanctions have done to its sales
of smartphones and telecommunications equipment worsened.
The drop marks the third straight decline in quarterly
revenue for Huawei, the world’s largest maker of telecom equipment and formerly
one of the world’s biggest smartphone sellers, and the declines have
accelerated since the end of 2020.
Huawei’s smartphone sales, once a top revenue driver for the
company, have fallen dramatically since the Trump administration imposed
restrictions last year blocking the company from buying most advanced
semiconductors.
Revenue from telecommunications equipment sales have also
dropped, although less dramatically, amid a U.S. campaign pressuring allied
countries to drop the Chinese company as a supplier of 5G equipment.
Second-quarter revenue fell to 168.2 billion yuan, about $26
billion, from 271.8 billion yuan in the same quarter a year ago, according to
calculations based on figures disclosed by the Shenzhen-based company Friday.
The decline marked a sharp acceleration from the 16.5% revenue drop in the
first quarter and an 11.2% drop in the fourth quarter of 2020.
The privately held company provides a limited financial
snapshot every three months. It didn’t report profits for the period but said
its net profit margin rose to 9.8% during the first half of the year from 9.2%
a year earlier.
0 comments:
Post a Comment