China’s Huawei Technologies recorded a revenue of CNY152.2 billion or $23.46 billion in Q1 2021, down 16.5% year over year, according to the company’s press release. Revenues were hurt by the sale of budget smartphone unit Honor last November.
Huawei’s net profit margin gained 3.8 percentage points year over year to 11.1% on cost cuts and $600 million loyalty payments boost.
The company warned of a challenging 2021 as it expects its future development strategy to take shape.
Huawei has been under pressure from the U.S which prompted it to sell its Honor Budget smartphone unit leading to fall in quarterly revenue.
Huawei is investing in businesses less reliant on U.S chip technology such as cloud computing and autonomous driving technology.
Huawei revenues fell 12.2% to 180.8 billion Yuan in Europe while sales in Middle East and Africa fell 8.7% to 64.4 billion Yuan.
