June 21, 2024

Huawei is increasing its sales despite the sanctions

Huawei is increasing its sales despite the sanctions

Huawei reported sales of 891.4 billion yuan in fiscal year 2020. This is equivalent to about 128 billion francs, an increase of 3.8% compared to the previous year, according to the company. Profits are also growing: 64.6 billion yuan (about 9.3 billion Swiss francs) means growth of 3.2 percent.

Only in July 2020, the United States tightened its sanctions against Huawei. Citing espionage, the United States cut off the Chinese tech giant’s access to chips from international production. Huawei rejects the allegations. Jiang Shisheng, Huawei’s first secretary of the board, was not fooled by the good business results: “Of course, we have many difficulties due to the US sanctions.” In particular, sales of high-end smartphones, whose chips have been affected by the sanctions, have collapsed.

Production is still possible currently because Huawei has stocked chips. Jiang Xisheng says, producing the missing parts ourselves is not an option: “Producing these chips is very complicated and currently impossible for us. We don’t think about that.” The group is looking for solutions to diversify its supply chains so that it does not depend on individual countries as suppliers.

Huawei announced that good work with wearables as well as laptops, headphones and smart displays helps to cope with losses. Additionally, the group wants to focus on connected cars and smart vehicles of the future – explicitly not as a product, but as a resource.

Huawei Switzerland recently showed how the company is working on “smart agriculture” projects in this country to bring 5G into local agriculture. Read more about it here.

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