China’s Huawei Technologies can look back on a particularly bad year thanks to the US sanctions introduced in 2019, which have since been tightened in several respects, and declining domestic demand. The company is currently undergoing the comprehensive strategy change process previously announced by the company’s management, however, the company does not expect any growth until 2022.
Huawei’s chairman Ping Guo said in a letter to workers on New Year’s Eve that the company expects sales of about 634 billion Chinese yuan (about $ l99.48 billion) by 2021, down 28.9% from a year earlier. compared to performance.
Guo said in a letter, management is fundamentally satisfied with the business performance in 2021, but also drew attention to the fact that the company will face a number of challenges in 2022 as well. Guo mentioned the unpredictable business environment due to the pandemic, the politicization of technology and the associated processes of deglobalisation.
According to the manager, Huawei must now adhere to the previously defined strategic direction and react “rationally” to all processes and phenomena that affect the company from the outside and over which Huawei has no influence.
For a Chinese giant that is apparently still generating huge revenue, the way out of the crisis since 2019 could clearly be to decouple its product portfolio as much as possible from U.S. technologies.
To this end, the company has launched a number of internal projects in recent years, including the development of its own operating system, but has so far failed to stop the downturn in the consumer market, leaving Huawei among the leading smartphone manufacturers in China this year.
The company is currently backed by its infrastructure business, but for the time being, this division also supplies solutions mainly to the otherwise huge domestic market and to countries where China has significant influence over local economic policy.
Source: HWSW Informatikai Hírmagazin by www.hwsw.hu.
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