Huawei records its biggest revenue drop in the first half of 2021: the brand is down by almost 30%. The company sold part of its mobile phone business following US sanctions, which analysts say contributed to the negative trend.
Huawei and the decline in revenue in the first half of 2021
A trend certainly not positive that of Huawei. The company, in fact, in the first six months of 2021 it recorded the largest decline in revenue in its history. According to many experts, the reasons behind the collapse lie in the sanctions imposed by the US government. These make it difficult for the Chinese brand to purchase components and software using US technology.
Revenues from the consumer electronics business, which includes phones, fell by 47%. Already at the beginning of 2021, Richard Yu, head of the company’s consumer sector, had declared that “US sanctions have placed great difficulties in our commercial operations and daily work”.
How much does 5G infrastructure affect the market?
A spokesperson for the company said that the brand’s problems are also to be found in the slow rollout of 5G in China. However, in the rest of the world, sales of Huawei devices are on the rise, despite pressure from the United States to exclude the Chinese brand from the 5G infrastructure due to national security concerns.
On the other hand, Huawei vigorously rejects allegations that the equipment produced poses a security risk. Indeed, the Chinese company defines these claims as “driven by political interests”.