Huawei's first half revenue dropped an annual 29.4 per cent as the company's consumer business slowed due to mounting pressure from US authorities and concerns about the security of its 5G equipment.
The Shenzhen-based telecoms manufacturer earned 320.4 billion Chinese yuan ($49.6bn) in revenue in the first six months of this year, almost 133.6bn yuan less than the prior year period, the company announced on Friday.
The company did not disclose a profit figure, but said its net profit margin for the period was 9.8 per cent of sales.
“Despite a decline in revenue from our consumer business caused by external factors, we are confident that our carrier and enterprise businesses will continue to grow steadily," Huawei's rotating chairman Eric Xu said.
"Our aim is to survive and to do so sustainably ... we will do this by creating practical value for our customers and partners,” he added.
Huawei's consumer business contributed 135.7bn yuan to the unlisted company's revenue in the first half. However, it was down 120.1bn yuan, or 46.9 per cent on an annual basis.
In November, Huawei sold its Honor smartphone business to a Chinese government-backed consortium for an undisclosed amount. This led to a big drop in its consumer business segment's revenue, industry analysts said.
Sales in the company’s carrier business reached 136.9bn yuan in the first half, an annual drop of more than 14 per cent. Its enterprise business surged 18.1 per cent yearly to 42.9bn yuan.
The company, which employs nearly 200,000 people, has been engaged in a trade dispute with the US administration, which considers the company to be a national security threat. However, Huawei has repeatedly refuted claims that its products could be a threat.
“These have been challenging times and all of our employees have been pushing forward with extraordinary determination and strength,” said Mr Xu.
“We have set our strategic goals for the next five years … we will keep on innovating to help build a low-carbon, intelligent world," he added.
Huawei, which was among the top three smartphone manufacturers in the first half of last year, was the world's sixth-biggest phone maker with an 8 per cent market share in the first quarter of this year, according to Counterpoint Research.
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US households add $601bn of debt in 2019
American households borrowed another $601 billion (Dh2.2bn) in 2019, the largest yearly gain since 2007, just before the global financial crisis, according to February data from the New York Federal Reserve Bank.
Fuelled by rising mortgage debt as homebuyers continued to take advantage of low interest rates, the increase last year brought total household debt to a record high, surpassing the previous peak reached in 2008 just before the market crash, according to the report.
Following the 22nd straight quarter of growth, American household debt swelled to $14.15 trillion by the end of 2019, the New York Fed said in its quarterly report.
In the final three months of the year, new home loans jumped to their highest volume since the fourth quarter of 2005, while credit cards and auto loans also added to the increase.
The bad debt load is taking its toll on some households, and the New York Fed warned that more and more credit card borrowers — particularly young people — were falling behind on their payments.
"Younger borrowers, who are disproportionately likely to have credit cards and student loans as their primary form of debt, struggle more than others with on-time repayment," New York Fed researchers said.
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