The consequences of US sanctions continue to hit the business of the Chinese Huawei Group. The network standard and smartphone provider posted a revenue in a row for the second time in a row. In the first quarter, the elderly increased by 16.5 percent to a good 152 billion yuan (19.4 billion euros) after a minus of 11.2 percent in the final quarter 2020. Huawei points out that it is not about tested numbers.
The network and infrastructure business, which signed around one third of the consolidated result last year, recorded "a steady growth", the company continued to share. The highly strong business with electronics for the consumer market, on the other hand, goes further. The problems caused by US sanctions play an essential role in smartphone production. In addition, after the sale of the daughter brand Honor a significant share of sales is missing.
Further information on the earnings situation does not make the company, the result is "As part of expectations". Huawei announced only, the net profit margin increased by 3.8 percentage points to 11.1 percent. For this purpose, among other things, revenue had contributed to patent licenses in the high amount of $ 600 million. "2021 becomes another challenging year for us, but it is also the year in which our future development strategy takes shape", said Eric Xu, Huatwehr Current CEO.
Huawei had lost through sanctions by the US government of President Donald Trump access to American technology – and can therefore sell, among other things, no new smartphones with Google services. The production of technical components such as processors is also affected by the US measures. This broke the sale of Huawei smartphones in the West. The company continues to focus on its strong position in network technology for 5G and expand its activities on new business areas.
Huawei has the premieges collected by US side, the company is a security risk, always backed up. The new US Prasident Joe Biden launched a review of Trump’s China policy. So far, the new US administration has not yet understood institutions to reduce sanctions. The Chinese manufacturer Xiaomi, however, was able to record a stage victory last and enforce the repeal of some restrictions in court. /