She said Chinese tech giant Huawei on Wednesday: Its revenue fell sharply in the first quarter as US sanctions affected its business.
Huawei’s revenue fell 16.5 percent year-on-year, to 152.2 billion Chinese yuan ($ 23.5 billion) in the three months ending March 31.
This marked the second consecutive quarter that the Chinese company’s revenue declined.
This is largely due to problems in Huawei’s consumer business group, which includes smartphones and other devices.
Huawei has not been able to ship its phones with the licensed Android operating system from Google since the two companies split in 2019.
Huawei’s smartphone shipments decreased by 41 percent in the fourth quarter of 2020.
The company sold its Honor smartphone brand to a group of investors last year.
And in 2019, the company was added to a US commercial blacklist called Entity List that prohibits US companies from exporting technologies to certain foreign entities.
And in 2020, the United States moved to cut the company’s access to the supply of major chipsets it needs for its smartphones.
Eric Shaw, the company’s rotating chairman, said in a statement: “2021 will be another challenging year for us, but it is also the year when our future development strategy begins to take shape.
He added: We thank our customers and partners for their continued confidence, and regardless of the challenges that face us, we continue to maintain the resilience of our business in order to survive and do so in a sustainable manner.
Huawei said it managed to increase its profit margin by about 3.8 percentage points year on year to 11.1 percent.
This is partly due to the $ 600 million Huawei received in patent rights in the quarter.
And in March, the company said it was starting to charge smartphone makers to use its patented 5G technology.
Huawei has thousands of patent families declared for 5G networks, and the company hopes this part of its business will provide it with a new flow of revenue as other parts of its business falter.
The company said on Wednesday that it is ramping up investment in software to move forward with integrating software and services into its revenue mix.
The company has strengthened its efforts in the software field, including in areas such as: cloud computing and smart cars, as the US sanctions have damaged the unit of its devices.