Trump Sanctions Shrank Huawei Profit by 16.5 Per Cent
Embattled Communist China's tech firm Huawei representative informed on Wednesday about the revenue's fall.
It works. The West can seriously harm and with some lack bankrupt some Beijing regime's businesses.
Sales declined 16.5 per cent from a year earlier to US $23.5 billion due in part to lower revenue for its consumer unit, the company said. It gave no info on earnings.
Huawei Technologies Ltd., Communist China’s tech brand, is struggling to hold onto its global market share following U.S. sanctions that devastated its smartphone sales, once among the world’s highest. The company is trying to convince the investors it is the biggest maker of network gear used by phone and internet carriers. But the claim was challenged by several firms including Cisco.
Former US State Secretary Mike Pompeo emphasised the company is a security risk and facilitates Communist China's spying.
Sanction on access to the US advanced technologies
The sanctions bar access to U.S. processor chips and services including Google’s music and other popular apps. Huawei designs its own chips, but manufacturers are barred from using U.S. technology required to produce them.
Honor was sold in November in hopes of reviving sales by separating it from the sanctions on the parent company. Wednesday’s announcement gave no details of sales by network gear, consumer and other business lines.
2021 will be another challenging year for us, admitted Mr. Eric Xu, one of three executives who take turns as Huawei chairman.
Huawei has responded by emphasizing its sales in Communist China and for electric and self-driving cars, industrial networks and other technology that is less vulnerable to U.S. pressure.
Huawei had a stockpile of U.S. chips for high-end smartphones but executives have said those were being used up.