(WSJ) Huawei Technologies Co. Ltd announced a 38% drop in revenue to 168.2 billion yuan in the second quarter as the U.S. sanctions on its smartphone and telecom equipment bite.
The company reported 320.4-billion-yuan revenue in the first half of 2021, with a net profit margin of 9.8%, an improvement from 9.2% in the same period last year.
The Chinese telecommunication equipment and smartphone vendor has recorded a revenue decline in three consecutive quarters since the end of last year.
Huawei’s revenue from the sales of telecommunication equipment has also been affected due to the U.S. campaign to its allies against buying its 5G equipment.
Despite declining revenues, Huawei’s chairman Eric Xu is optimistic that the carrier and enterprise business segment will grow.
Analysts believe that Huawei’s telecom equipment supplies business could rebound towards the end of the year with 60% of the $6 billion 5G business in China.
