Huawei’s consumer segment revenue halved, despite profits up 76 percent

Huawei recorded almost half the turnover last year with the sale of consumer hardware. This includes smartphones, tablets and wearables. Nevertheless, the Chinese company managed to achieve no less than 75.9 percent more profit.

In total, Huawei earned roughly 637 billion Chinese yuan over the whole of 2021, converted almost 91 billion euros, according to the report. company’s most recent annual figures. That is a decrease of 28.5 percent compared to the previous year, the manufacturer predicted earlier. The largest decrease occurred in the consumer division, where turnover was 49.6 percent lower.

Since the United States imposed sanctions against the Chinese company, new Huawei products could no longer use Google services and the purchase of American hardware became more difficult. This has led to a major decline in global sales of smartphones and other consumer hardware. In concrete terms, the turnover achieved in Europe and the Americas decreased by 27.3 and 26.3 percent respectively. There was a similar decline last year.

Despite the overall decline in sales, both in China and abroad, Huawei was still able to achieve significantly higher profits. In its own words, the company was able to “better with uncertainties”, referring to the sanctions imposed mainly by the United States.

The main reason for the significant increase in profits is the item ‘other income’; an increase of 8685.7 percent was registered here from 692 million Chinese yuan in 2020 to 60.7 billion Chinese yuan in 2021. This item includes income from the sale of the former subsidiary Honor.