Huawei's smartphone business to decline £30 billion by year end

Company's rotating chairman 'hopeful' the company can survive next five years

A shot of a woman walking in front of a Huawei sign

Huawei could potentially see revenue from its smartphone business drop by almost £30 billion this year as the company continues to struggle with US trade restrictions.

Speaking at a press conference in Beijing on Friday, the firm's rotating chairman, Eric Xu, said disappointing smartphone sales could not be offset by other business areas and suggested the firm will struggle to continue, according to Reuters.

Huawei has brought in just £36.16 billion from the first half of 2021, according to its earnings report, which is roughly the amount its rotating chairman predicts it will lose by the end of the year. Xu is also reported to have said his "biggest hope" is that the company will still exist in five to ten years.

US trade sanctions placed upon the Chinese firm under then president Donald Trump's administration have hit its smartphone business the hardest; the company has already been forced to sell off its Honor brand and is now denying reports it plans to do the same with its P and Mate brands, following poor sales.

The sanctions meant Huawei is no longer able to license the full version of Android, which includes Google Play Services and popular apps like Netflix and WhatsApp, on its smartphones, effectively derailing its expansion into the European market.

Related Resource

Maslow's Hierarchy of Needs and the workplace

Sample our exclusive Business Briefing content

Business man writing on a transparent board with Maslow's hierarchy of needs listed on it in colourful blocksFree download

Huawei's sales have flagged in the region as a result, despite an innovative number of handset launches. The company has tried to adopt an alternative operating system - HarmonyOS - and worked to build out a suitable app ecosystem, but these efforts have done little to help Huawei regain ground.

Even with Trump's presidency at an end, Huawei and the US continue to endure a fractured relationship. On Thursday, US commerce secretary, Gina Raimondo, said that Joe Biden's administration would take further action against the Chinese firm "if necessary".

The comments were in response to calls for even tougher action against Huawei, which is still seen as a national security threat due to alleged ties to the Chinese government.

Featured Resources

The ultimate law enforcement agency guide to going mobile

Best practices for implementing a mobile device program

Free download

The business value of Red Hat OpenShift

Platform cost savings, ROI, and the challenges and opportunities of Red Hat OpenShift

Free download

Managing security and risk across the IT supply chain: A practical approach

Best practices for IT supply chain security

Free download

Digital remote monitoring and dispatch services’ impact on edge computing and data centres

Seven trends redefining remote monitoring and field service dispatch service requirements

Free download

Recommended

Podcast transcript: Are foldable phones more than a fad?
Mobile

Podcast transcript: Are foldable phones more than a fad?

17 Sep 2021
The IT Pro Podcast: Are foldable phones more than a fad?
Mobile

The IT Pro Podcast: Are foldable phones more than a fad?

17 Sep 2021
Huawei P40 Pro Plus review: Possibly the world’s best smartphone...with a catch
Mobile Phones

Huawei P40 Pro Plus review: Possibly the world’s best smartphone...with a catch

4 Aug 2021
Huawei, Verizon settle patent lawsuit
Policy & legislation

Huawei, Verizon settle patent lawsuit

12 Jul 2021

Most Popular

Best Linux distros 2021
operating systems

Best Linux distros 2021

11 Oct 2021
Apple MacBook Pro 15in vs Dell XPS 15: Clash of the titans
Laptops

Apple MacBook Pro 15in vs Dell XPS 15: Clash of the titans

11 Oct 2021
Windows 11 has problems with Oracle VirtualBox
Microsoft Windows

Windows 11 has problems with Oracle VirtualBox

5 Oct 2021