According to this document, Huawei estimates that its sales this year will reach 634 billion yuan (about 2.2 trillion CZK). This is a 28.9 percent decrease from last year’s 891.4 billion yuan, Reuters writes.
According to the letter, the company will continue to face significant challenges, such as “the unpredictable business environment, the politicization of the technology sector and the increasing pressure for deglobalization.”
In addition to US sanctions, Huawei’s sales were also negatively affected by the drop in demand linked to the COVID-19 pandemic. “We must stick to our strategy and respond rationally to external forces beyond our control,” Ku Paching said.
Trump administration intervention
In May 2019, former US President Donald Trump blacklisted the Chinese company, making it impossible for it to purchase important technologies of American origin. He argued about national security concerns. Last year, the Trump administration restricted Chinese companies’ access to chips that were developed or manufactured using US technology.
Due to US sanctions, almost all new Huawei phones have been introduced with a shortened version of the Android operating system since May last year. Due to the ban, the brand is not allowed to use some Google software on its new devices.
For example, Google Maps, Gmail client, YouTube player, or Google Play App Store are not working. However, Huawei replaces all the apps with the alternatives available through AppGallery.
“Proud twitter enthusiast. Introvert. Hardcore alcohol junkie. Lifelong food specialist. Internet guru.”