IT Pro is supported by its audience. When you purchase through links on our site, we may earn an affiliate commission. Learn more

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

Four strategies for building a hybrid workplace that works

All indications are that the future of work is hybrid, if it's not here already

Free webinar

The digital marketer’s guide to contextual insights and trends

How to use contextual intelligence to uncover new insights and inform strategies

Free Download

Ransomware and Microsoft 365 for business

What you need to know about reducing ransomware risk

Free Download

Building a modern strategy for analytics and machine learning success

Turning into business value

Free Download

Recommended

Data centres that switch from HDDs to SSDs use 70% less power
data centres

Data centres that switch from HDDs to SSDs use 70% less power

16 May 2022
Huawei MateBook X Pro (2021) review: Battery woes plague the evergreen ultraportable
Laptops

Huawei MateBook X Pro (2021) review: Battery woes plague the evergreen ultraportable

26 Apr 2022
Huawei MateStation X hands-on review: All aboard for productivity
Hardware

Huawei MateStation X hands-on review: All aboard for productivity

28 Feb 2022
Huawei MateView review: A stunning, innovative screen – but it’s expensive
monitors

Huawei MateView review: A stunning, innovative screen – but it’s expensive

14 Dec 2021

Most Popular

Russian hackers declare war on 10 countries after failed Eurovision DDoS attack
hacking

Russian hackers declare war on 10 countries after failed Eurovision DDoS attack

16 May 2022
16 ways to speed up your laptop
Laptops

16 ways to speed up your laptop

13 May 2022
Google Russia files for bankruptcy, ends operations in the country
Business operations

Google Russia files for bankruptcy, ends operations in the country

19 May 2022