Huawei announces 16.5 per cent fall in revenue in first quarter

May 05, 2021 | 10:07

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Huawei has announced its business results for the first quarter of 2021, with revenue decreasing 16.5 per cent on-year, in line with forecasts.

huawei announces 165 per cent fall in revenue in first quarter

The performance of Huawei in the first quarter is within expectations

In the first quarter, Huawei generated ¥152.2 billion (23.5 billion)in revenue. Its network business maintained steady growth, while consumer business revenue declined, in part as a result of selling the Honor smart device brand in November 2020.

Huawei's net profit margin was up 3.8 percentage points on-year at 11.1 per cent – the result of the company's ongoing efforts to improve quality of operations and management efficiency, as well as a patent royalty income of $600 million.

"2021 will be another challenging year for us, but it is also the year that our future development strategy will begin to take shape," said Eric Xu, Huawei's rotating chairman. "We thank our customers and partners for their ongoing trust. No matter what challenges come our way, we will continue to maintain our business resilience. Not just to survive, but do so sustainably. As always, we will remain focused on the needs of our customers and keep delivering practical business value."

Huawei is driving efforts to fully unleash the value of 5G. It is helping carriers around the world roll out their 5G networks, meeting the demands of consumers and industries alike, while boosting its own delivery efficiency. It continues to improve its software engineering capabilities and ramp up investment in the software sector to gradually increase the proportion of software and services in its total revenue mix.

"As always, we remain committed to technological innovation and investing heavily in research and development as we work to address supply continuity challenges caused by restrictions in the market," stressed Xu. "We will continue making breakthroughs in basic science and pushing the frontiers of technology."

Huawei is a leading global provider of information and communications technology (ICT) infrastructure and smart devices, with integrated solutions across four key domains – telecom networks, IT, smart devices, and cloud services. The company has 197,000 employees and operates in more than 170 countries and regions.