Beijing (PingWest)- Huawei Technologies reported a sharp decline in first quarter revenue after the U.S and some allies banned suppliers from doing business with the firm.
The first quarter revenue came in at CNY155.2 billion, down 16.5% from CNY182.2 billion in the same period last year mainly driven by sharp decline in consumer business, which is one of the company’s main revenue driver.
“The rest of 2021 will still be challenging months for us, but 2021 is also the year that our future development strategy will begin to take shape,” said Eric Xu, Huawei’s rotating chairman.
The decrease in revenue reflects how the U.S sanction affect Huawei, which was once the world’s largest smartphone maker.
Huawei has been at the center of escalating U.S-China trade and technological rivalry in recent years and the Trump administration accused it of spying on the US without presenting evidence of specific espionage.
As a result, Huawei was placed by Washington on a blacklist since 2019, barring it from access to crucial semiconductors it need to produce consumer products.
“2021 will be a crucial year for Huawei to make a turnaround, especially with the support of the automotive and cloud computing businesses. The huge market size for smart vehicles gives Huawei an opportunity to offset its smartphone losses,” Will Wong, an IDC analyst noted in a report.
Last week, Huawei announced that it has started to sell smart cars in its flagship stores across China,
Seres SF5, an extended range electric vehicle jointly launched by Huawei and carmaker Seres, is the first smart car to be marketed and to be sold by Huawei in its stores.