Chinese tech giant Huawei Technologies Co. saw a double-digit drop in its top line for the second quarter as US restrictions continued to hound the business, WSJ reported.
- Revenue dropped 38% to 168.2 billion yuan from 271.8 billion in 2020, following the 16.5% decline in the first quarter and 11.2% drop in the last three months of 2020.
- Huawei’s revenue has been on a downtrend after former US President Donald Trump blocked the firm from acquiring American semiconductors and pushed allies to drop the firm as a 5G equipment provider.
- Huawei Deputy Chairman Eric Xu noted the impact of the restrictions but noted that the company’s aim is to “survive and to do so sustainably” as he cited the company’s five-year strategic goals.
- Analysts believe Huawei will benefit from China’s acceleration of its own 5G network, but smartphone sales will continue due to chip issues. It was the top vendor in the second quarter of 2020 but has since fallen to the tenth spot in the same quarter this year.
The company is developing replacements for American technology, such as its self-developed operating system launched earlier this year. 002502 is up 0.68%.