Huawei Reports 16.5 Drop in Revenues in First Quarter

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Chinese tech giant Huawei said Wednesday that its revenues dropped sharply in the first quarter as U.S. sanctions took a toll on its business. Huaweis revenues fell 16.5 yearonyear to 152.2 billion Chinese yuan 23.5 billion in the three months ending March 31, according to unaudited financial results revealed by the company on Wednesday. It marks the second consecutive quarter in which Huaweis revenues declined. This was largely down to pain in Huaweis consumer business, which includes smartphones and other devices. Huawei hasnt been able to ship its phones with Googles licensed Android operating system since the companies parted ways in 2019. Huaweis smartphone shipments plunged 41 in the fourth quarter of 2020. The company sold its Honor budget smartphone brand to a consortium of investors last year.

In 2019, Huawei was added to a U.S. trade blacklist called the Entity List which restricts American firms from exporting technologies to certain foreign entities. And in 2020, the U.S. moved to cut Huawei off from key chip supplies it needs for its smartphones. Huawei said it actually managed to increase its profit margin by about 3.8 percentage points yearonyear to 11.1. This was in part down to the 600 million Huawei received in patent royalties in the quarter.

In March, Huawei said it would begin charging smartphone makers a royalty to use its patented 5G technology. Huawei has thousands of declared 5G patent families, and the company is hoping this part of its business…

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