Huawei Technologies Co. saw its revenues decline for the first time on record due to the impact of U.S. sanctions, Bloomberg reported.
- Huawei reported revenues down 11% to 220.1 billion yuan in 2020’s fourth quarter. This compares with a 3.7% growth in the third quarter and 23% in the second quarter.
- Full-year sales rose 3.8% while profit gained 3.2%, attributed to strong mobile sales in the first semester which offset the last six months.
- Former U.S. President Donald Trump blacklisted Huawei from dealing with American firms, with his successor Joe Biden showing few signs of letting up. The Chinese giant previously purchased $10 billion to $20 billion of components from U.S. suppliers.
- Prior to the sanctions, Huawei said it built up inventories ahead of the sanctions in September, and it has enough stockpiles for the enterprise business.
- Huawei’s smartphone shipments fell 42% in the last quarter of 2020 to lag behind Apple, Samsung, and domestic rivals Xiaomi Corp. and Oppo. The company intends to build up other consumer electronics such as wearables which grew 65% in 2020.