Before the U.S. ban set in, Huawei was all set to become the largest mobile phone brand in the world. In fact, even after the ban, the company still took the no. 1 spot but for a short time. Now, there are reports that Huawei has moved past the ban. Huawei yesterday announced its latest sales estimates for the past few months. According to its own statements, the company assumes that sales will be at the previous year’s level. At the same time, the head of the group said that the decline in revenue, which has continued since the US sanctions came into force, has been successfully stopped.
The US embargo has now become the “new normal” for Huawei, so you deal with it in everyday life and deal with it “as usual”. CEO Eric Xu struck a positive note in a letter to employees, which was also made available to the media.
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Does Huawei make any profit?
However, Xu didn’t say anything about Huawei’s profits. Thus, it is unclear whether it’s going to make a profit or make a loss. It will probably only be clear in a few months because Huawei will not publish its business figures for the entire year 2022 until spring 2023. Huawei has seen a massive drop in sales since US sanctions came into effect. The ban prohibits American firms from supplying the Chinese company with products that were developed or produced using US tech. Of course, sales are no longer at the same level as before the US embargo began.
In the meantime, however, Huawei has changed its business areas many times. The company now has new partners and, among other things, is also increasingly the monetization of its patent portfolio. An example of this is that Huawei can no longer sell 5G-enabled mobile phones under its own brand. But the company now acts as a licensor for hardware designs, as was recently seen with the example of the former French brand Wiko. The Wiko 5G, a rebranded Huawei Nova 9 SE mobile phone supports 5G and it is available in China.