Huawei Technologies Co.’s revenue in the final quarter of 2020 fell by 11% to 220.1 billion Yuan or $33.5 billion. The slip in quarterly revenue is the first on record, reflecting the devastating impacts of U.S sanctions on the company.
The plunge in the fourth quarter revenue follows a 3.7% growth in the September quarter and 23% in the second quarter.
Full-year sales and profits rose 3.8% and 3.2% respectively, in line with the “marginal growth” previously projected.
Huawei’s smartphone shipments tumbled 42% during the final three months of last year
The company credits record 5G base station orders and strong mobile sales in the first half for offsetting the final six months.
The firm intends to keep launching flagship phones while it builds up other consumer electronics like wearables, which grew 65% last year.
Huawei is also leaning towards new growth areas of agriculture, healthcare and electric cars after concerns that Biden administration will continue to tighten restrictions
The company seeks a seat at the table with tech giants vying to define the rapidly evolving fields of connected vehicles, homes, and workplaces.
Huawei had previously purchased $10 billion to $20 billion of components each year from the U.S and other customers won’t be able to fully make up for the lost business.
