According to Huawei, the first half of its net profit more than halved as a result of weak customer demand and US technology limitations combined with a challenging environment.
The period saw a 5.9 percent year-over-year reduction in revenue to CNY 301.6 billion (approximately Rs. 3.6 lakh crore), with January to March seeing the biggest decline.
Ken Hu, Huawei's rotating chairman, spoke to the company's business-to-business enterprise division and said, "While our device business was significantly damaged, our ICT infrastructure business maintained consistent development."
According to calculations by Reuters, the Chinese technology company's profit margin shrunk to 5%, with a net profit of CNY 15.08 billion (approximately Rs. 18,000 crore), down from CNY 31.39 billion (about Rs. 37,000 crore) in the first half of 2021.
a fragile economy, COVID- According to a corporate representative, 19 interruptions and supply chain issues harmed the company's device segment, which sells smartphones and laptops.
To CNY 101.3 billion, that company's revenue fell by more than a quarter (roughly Rs. 1 lakh crore). Both its carrier and enterprise operations expanded.
Additionally, Huawei increased investment in new ventures and businesses, which had an effect on profit.
According to Counterpoint Research, second-quarter sales in the larger Chinese smartphone market declined 14.2 percent year over year, with volumes falling to their lowest level in ten years.
In 2019, the United States added Huawei to an export blacklist, preventing it from using vital American-made technology and damaging its capacity to develop chips and purchase parts from outside suppliers.
The company's once-dominant handset industry was damaged by the prohibition.
According to consultant Canalys, Huawei is developing new business lines with its cloud services business, taking 18% of China's expanding market. These business lines include smart car components and energy efficiency systems.
Additionally, Huawei launched its own proprietary Harmony operating system, which is currently utilised by 300 million devices.Huawei devices.
