Chinese telecoms giant Huawei said on Friday that its annual revenue fell by a third this year, affected in part by US sanctions that hurt sales of its smartphones.
Huawei was caught up in the trade and technology rivalry between the United States and China, which led the former Donald Trump administration to pass measures against the company for alleged cybersecurity and espionage threats.
The company’s revenue this year fell 29% year-on-year to 634 billion yuan ($ 99.5 billion), Chairman Guo Ping said in the New Year’s message.
“In 2021, despite hardships and tribulations, we have worked hard to create tangible value for our customers and our local communities,” Guo said.
“We have improved the quality and efficiency of our operations and we expect to close the year with a total revenue of 634 billion yuan,” he added, noting that the “global performance was in line with forecasts.”
The drop in revenue is also explained by the sale of its Honor budget phone brand at the end of the previous year.
The company is not listed on the stock exchange and the year-end message did not offer further financial details.
Huawei’s hardships in the telephone sector have pushed it into new lines of business such as business computing, health and wearable technology devices, smart vehicle technology or programming.
The United States vetoed Huawei from purchasing crucial components for its products such as microchips and forced it to create its own operating system by preventing it from using Google’s Android system.
This month, the company launched its new foldable phone and assured that 220 million Huawei devices already have its HarmonyOS system.
Huawei is the world’s largest provider of components for telecommunications networks and was among the top three producers of smartphones along with Samsung and Apple.
However, this position has fallen due to pressure from the United States. In October, the group assured that its sales volume between January and September fell by 32%.