news


Huawei consumer business continues to tank

Chinese telecoms vendor Huawei’s latest quarterly numbers reveal another big fall in revenues, thanks mainly to its crippled consumer division.

While we should perhaps be grateful that privately-owned Huawei chooses to share any numbers with us, we still regret how sparing they are. All we get these days is just the two datapoints: that revenue for the first three quarter combined was CNY455.8 billion and its net profit margin was 10.2%. The revenue figure is down 32% year-on-year but the margin is slightly improved. Light Reading has done the maths for the Q3-only numbers.

“Overall performance was in line with forecast,” said Guo Ping, Huawei’s Rotating Chairman. “While our B2C business has been significantly impacted, our B2B businesses remain stable. Through our ongoing commitment to innovation, R&D, and talent acquisition, and rigorous attention to operating efficiency, we are confident we will continue to create practical value for our customers and the communities in which we work.”

A look at the latest numbers below (derived from Counterpoint) reveals Huawei’s smartphone business is still in a tailspin that will see it all but eradicated by the end of the year if the trend continues. Counterpoint’s numbers even for Huawei’s domestic market are little better, with the chip embargo and Android restrictions decimating its share of that market. It can derive some small consolation from the apparent success of its move to spare Honor from the same fate.

With the global semiconductor shortage showing no sign of letting up, nor sparing anyone its ravages, Huawei might reflect that there are worse times to be out of the devices market. Networking equipment needs chips too, though, and Huawei’s stockpiles can’t be infinite. There doesn’t seem to be too much decline left on the consumer side for Huawei, so if overall revenues keep declining at this rate we will have to assume the networking business is the cause.


2 comments

  1. Avatar Al 02/11/2021 @ 9:28 am

    It probably will even more. Their OS is inexistent outside China. Their flagships are stuck in Android 10 and the lack of apps is abysmal. Their phones are great. I had a p40 pro but had to change it . Battery life , camera , charging speed were great. But lack of banking apps support and messaging apps without notifications was a deal breaker.

  2. Avatar Nhlanhla Kubheka 02/11/2021 @ 11:57 am

    I’m in South Africa and using Huawei mate 20 lite and still gonna used Huawei phones.

    They are working very well with Google, what supp, Facebook and other apps.

    Huawei will prosper they must concentrate on the countries supporting them and leave USA and it allies.

Leave a comment

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Events

There are no upcoming events.

Polls

Do you agree public funding should be used to support mobile operators to more broadly deploy Open RAN?

Loading ... Loading ...