Huawei’s smartphone industry has struggled below U.S. sanctions that prohibit it from purchasing chips and different elements from key providers.
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BEIJING — Chinese language telecommunications massive Huawei introduced Thursday that first quarter earnings fell by way of just about 14% from a yr in the past, whilst its benefit margin greater than halved.
“Our shopper industry used to be closely impacted, and our [information and communications technology] infrastructure industry skilled secure expansion,” Ken Hu, Huawei’s rotating chairman, mentioned in a observation. “In 2022, we nonetheless face a difficult and sophisticated industry atmosphere.”
The corporate reported 131 billion yuan ($20.63 billion) in earnings for the primary quarter. That is down by way of 13.9% from the similar duration final yr, and a greater than 27% decline from the fourth quarter of 2021.
First quarter benefit margin of four.3% used to be lower than part the 11.1% reported a yr previous.
Hu mentioned the quarterly effects have been consistent with the corporate’s expectancies and that Huawei has larger its funding in analysis and building.
Huawei’s smartphone industry has struggled below U.S. sanctions. The Trump management put the corporate on a blacklist that restricts it from purchasing important elements comparable to complex semiconductors from U.S. providers.
Smartphone gross sales in China throughout other manufacturers fell by way of 14% within the first quarter from a yr in the past, in keeping with Counterpoint Analysis.
Huawei logged the worst decline out of 7 manufacturers, rating 6th by way of marketplace proportion and with gross sales plunging by way of 64.2% from a yr previous, the document confirmed. The corporate’s smartphone gross sales in China additionally fell by way of 12% from the prior quarter.
Apple used to be the one different corporate at the checklist to submit a quarter-on-quarter gross sales decline in China, down by way of 23%, in keeping with Counterpoint. Alternatively, the iPhone maker’s China gross sales nonetheless grew by way of 4.4% within the first quarter from a yr in the past.
Taking a look to different companies
Huawei has emphasised hiring skill and growing different industry strains to counter the affect of falling smartphone gross sales.
Particularly, whilst the corporate mentioned it’s going to no longer construct its personal vehicles, Huawei has entered the recent electrical automobile marketplace by way of incorporating its HarmonyOS running machine and different generation into vehicles manufactured by way of conventional Chinese language auto manufacturers.
Rotating chairman Hu mentioned previous this week that a minimum of two extra automobile fashions the use of Huawei generation could be introduced this yr. The primary automobile to make use of HarmonyOS used to be the Aito M5, which started deliveries previous this yr.
Huawei mentioned its analysis and building workforce for sensible vehicles has reached 5,000 other people, and that the corporate’s funding in auto tech-related operations reached $1 billion final yr.
