China’s Huawei has announced that cellphone industry revenue will fall by at least US$30 billion (about R$159 billion) in 2021. To make up for the loss, the company plans to invest in new sources of growth in the coming years.
During the press conference held in Beijing this Friday (24), President Eric Xu said that the company is “getting used to” the sanctions imposed by the US. However, the new business related to 5G does not outweigh the recent losses.
Since 2019, Huawei has been barred from importing US technology materials. The restriction, imposed by former US President Donald Trump, affected the company’s power to design its own chips and supply components for other brands.
So the sanctions hit smartphone manufacturing hard. Formerly known as one of the world’s largest mobile phone providers, the maker dropped the ranking of China’s top five best-selling brands in Q2 2021.
Furthermore, Huawei ended the 1st half of 2021 with a 29.4% drop in revenue compared to the same period last year. Overall, revenue fell by 320.4 billion yuan from 454 billion yuan a year earlier.
hope in new areas
According to Eric Xu, China’s efforts to develop the semiconductor industry have shown very encouraging results. However, Huawei will take a long time to meet the supply chain challenges again.
With the Biden administration showing little interest in lifting sanctions, the company is looking to other areas for growth. In addition to providing 5G technology, the brand is offering AI-based infrastructure upgrades for airports.
Huawei is also exploring investment in non-technology sectors. With that, the executive reveals that his “greatest hope” is that the company will still exist in 5 to 10 years.