Huawei released a rather austere first-quarter trading statement on Friday, yet the two paragraphs were enough to show the catastrophic impact US sanctions have had on the Chinese tech firm.
But with margins less than half of what they were previously, net income is likely to be significantly lower year on year.
For context, Huawei was averaging over £25bn in revenues each quarter in 2020, reduced to around £18bn per quarter in 2021 as sanctions began to take effect. Margins tended to oscillate between 8% and as high as 19%
But with margins less than half of what they were previously, net income is likely to be significantly lower year on year.
For context, Huawei was averaging over £25bn in revenues each quarter in 2020, reduced to around £18bn per quarter in 2021 as sanctions began to take effect.
Meanwhile, capital expenditure has shot up as Huawei figures out how to continue as a going concern without access to the global smartphone market.
Privately owned Huawei’s R&D spending in 2022 equated to roughly a quarter of annual sales, as the company begins to explore new sectors such as electric vehicles and cloud computing to replace its hollowed-out smartphone business.
Having been cut off from the US semiconductor market, Google’s Android operating system and the UK 5G network in recent years, Huawei posed its biggest-ever operating profit decline of -65% in 2022.