On this Wednesday, March 31, Huawei presented its 2020 Annual Report, with the company’s financial results globally. Altogether, sales revenue last year totaled 891.4 billion Yuan (~ US $ 136.7 billion), which means an increase of 3.8% compared to the previous year.
The company’s net income, on the other hand, reached 64.6 billion Yuan (~ US $ 9.916 billion), which is equivalent to an increase of 3.2% in the annual comparison. Performance slowed down over the year, due to the United States sanctions in 2019 and 2020. If Huawei hasn’t enough problems coming from the US ban, the whole Coronavirus pandemic slowed the company’s business even more.
Huawei’s focus in 2020 was to remain stable with the operations of more than 1,500 networks in more than 170 countries and regions. The efforts would have been important to support tasks. Huawei technologies greatly helped this period of social detachment, such as remote working, remote education, and e-commerce activities in regions that have had a lockdown. The company would also have acted in more than 3 thousand projects related to 5G in an amount exceeding 20 sectors, such as coal mining, steel production, ports, and manufacturing, in partnership with global operators.
Gizchina News of the week
Ken Hu, the company’s chairman made the following statement:
“Last year, we stood firm in the face of adversity. Huawei will continue to innovate to create value for our customers. We will also help fight the pandemic and support economic recovery and social progress worldwide. We also took this opportunity to further improve our operations, leading to a performance that largely followed the forecast. Huawei continues to work closely with our customers and partners to support social progress, economic growth, and sustainable development. ”
Will the company keep growing in 2021?
Now the big question that remains is whether the company will be able to keep this growth. The fact is, that despite the COVID-19 crisis and US sanctions, the company still managed to bring several smartphones last year. Several smartphones under Huawei and Honor monikers. However, the situation became more complicated later last year. The sanctions escalated forcing TSMC to cease business with Huawei’s HiSilicon that was behind the manufacture of Kirin chipsets. Now, the company needs to rely on third-party partners such as MediaTek to keep bringing smartphones. Also, in November last year, Huawei decided to sell its Honor sub-brand to focus on Huawei-branded smartphones. It also allows Honor to keep its flight as an independent brand.
Huawei is set to unleash new smartphones under the Huawei P50 series. However, the devices keep being pushed forward due to the very limited amount of Kirin 9000 chips. The company is also expected to unveil its HarmonyOS system that will replace Android on existing/supported Huawei smartphones.
With many challenges ahead, and fewer smartphones coming, we assume that the company will not experience major growths this year.
