Huawei, China's largest technology company, posted a 17 per cent drop in first quarter revenue on lower smartphone sales, operational difficulties caused by the Covid-19 pandemic and the impact of US sanctions.
The Shenzhen-based telecoms manufacturer’s revenue for the January-March period reached $23.17 billion, the company said in a statement on Wednesday. Its net profit margin during this period was 3.8 per cent.
Huawei did not disclose its profit figure for the quarter.
"2021 will be another challenging year for us, but it's also the year that our future development strategy will begin to take shape," Eric Xu, the company’s rotating chairman, said.
"No matter what challenges come our way, we will continue to maintain our business resilience. Not just to survive, but do so sustainably. As always, we will remain focused on the needs of our customers and keep delivering practical business value."
The company also earned a patent royalty income of $600 million during the first quarter.
Huawei, which was among the top three smartphone manufacturers in the first half of last year, is now the world's sixth-biggest phone maker with an 8 per cent market share, according to Counterpoint Research.
In November, it sold its Honor smartphone business to a Chinese government-backed consortium for an undisclosed amount. This contributed to the drop in its consumer business segment's revenue, the company said.
Last month, Huawei reported a 3.8 per cent rise in 2020 revenues to $136.7bn. Net profit increased 3.2 per cent to $9.9bn.
The company, which employs more than 197,000 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.
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Uefa Champions League quarter-final, second leg (first-leg score):
Manchester City (0) v Tottenham Hotspur (1), Wednesday, 11pm UAE
Match is on BeIN Sports
The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
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2000: Israel withdraws from Lebanon after nearly 30 years without an officially demarcated border. The UN establishes the Blue Line to act as the frontier.
2007: Lebanon and Cyprus define their respective exclusive economic zones to facilitate oil and gas exploration. Israel uses this to define its EEZ with Cyprus
2011: Lebanon disputes Israeli-proposed line and submits documents to UN showing different EEZ. Cyprus offers to mediate without much progress.
2018: Lebanon signs first offshore oil and gas licencing deal with consortium of France’s Total, Italy’s Eni and Russia’s Novatek.
2018-2019: US seeks to mediate between Israel and Lebanon to prevent clashes over oil and gas resources.
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Esha Oza (captain), Al Maseera Jahangir, Emily Thomas, Heena Hotchandani, Indhuja Nandakumar, Katie Thompson, Lavanya Keny, Mehak Thakur, Michelle Botha, Rinitha Rajith, Samaira Dharnidharka, Siya Gokhale, Sashikala Silva, Suraksha Kotte, Theertha Satish (wicketkeeper) Udeni Kuruppuarachchige, Vaishnave Mahesh.
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Friday, Sept 26 – First ODI
Sunday, Sept 28 – Second ODI
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Midfielders: Mahmoud Al Mawas, Mohammed Osman, Osama Omari, Tamer Haj Mohamad, Ahmad Ashkar, Youssef Kalfa, Zaher Midani, Khaled Al Mobayed, Fahd Youssef.
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