Huawei expects annual turnover to be 29 percent lower

Huawei’s annual revenue for 2021 is expected to be nearly a third lower than that of 2020, according to the company’s chairman. Revenue is likely to fall due to sanctions the company faces and the sale of subsidiary Honor.

Huawei expects to close the year with a turnover of 634 billion yuan, or 88.2 billion euros, chairman Guo Ping said in his New Year’s announcement, according to AFP. The annual turnover would therefore be 29 percent lower than in 2020. According to the chairman, Huawei had to deal with “trials” in 2021. He also said that the telecoms division had remained stable and that the ‘overall performance was in line with forecasts’. The chairman did not provide further details on the results.

Part of the drop in sales is attributable to the sale of Honor late last year. Honor accounted for about a quarter of Huawei’s smartphone shipments in 2020. The subsidiary was also subject to US sanctions for the sale, which prevented it from supplying certain parts. Huawei is still suffering from this trade ban. The company is not allowed to put Google services on its smartphones and several western countries have banned Huawei, whether or not partly from mobile networks, after spying allegations.