Huawei reports 3.2% rise in 2020 profit as revenue from outside China declines

The Chinese company Huawei Technologies announced a modest growth in its annual profit during the year 2020, as its revenues from the overseas market declined due to the turmoil caused by the pandemic and the listing of the company on the list of export bans by America, where the net profit of the company in 2020 reached 64.6 billion yuan (equivalent to $9.83 billion) to record an increase of 3.2%, knowing that its profits increased by 5.6% during the same period a year ago.

It is reported that Huawei was placed on a ban on US exports by former President Donald Trump in 2019 and was denied access to any technology of American origin, which affected its ability to design its own chips and made Huawei import the parts it needed in its industry from other external sources, and this ban put the company’s business under tremendous pressure, which prompted it to sell its smartphone unit with a limited budget to a group of agents and dealers last November in an attempt to survive.

However, Huawei stated that its consumer devices business, which includes smartphones, collected revenue of about 482.9 billion yuan, up 3.3% year-on-year and accounting for nearly half of the company’s total revenue.

It was not precisely determined the extent of the decline in smartphone revenues alone, because its decline was offset by a 65% increase in the company’s sales of other devices such as smart watches, laptops, etc., and as the company is a network operator, its business revenues that include 5G network equipment have reached 302.6 billion yuan, up 0.2% from the same period a year ago.

Huawei’s growth came mainly from sales in its home market after its revenue from China rose by 15.4% to 584.9 billion yuan, but its business declined in all other markets, recording a decline in revenue of 12.2% in Europe, the Middle East and Africa, and a decrease By 8.7% in the rest of Asia to just 64.4 billion yuan, in addition, revenue fell by 24.5% to 39.6 billion yuan in its Americas market.

But the company hopes its overseas sales will improve in 2021, and Huawei added that its corporate segment revenue rose 23% year-on-year to 100.3 billion yuan, although it is by far the lowest revenue-generating segment relative to the company’s other segments.

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