Huawei registers plateaued revenue growth, US sanctions impact wanes

Chinese tech giant Huawei on Friday (December 30) estimated that its 2022 revenue remained flat. This indicates that decline in company's sales due to US sanctions had come to a halt. The company's sales have registered a meagre increase of 0.02 per cent. In spite of this, rotating chairman Eric Xu sounded upbeat in company's annual New Year's letter.

"US restrictions are now our new normal, and we're back to business as usual," Xu wrote in the letter that was addressed to staff and released to media.

As per Xu, the revenue for the year is expected to be 636.9 billion yuan ($91.53 billion). Huawei's revenue has increased by a small percentage than what it was in 2021 (636.8 billion yuan).

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Xu's letter did not mention Huawei's profitability. The company typically discloses its full annual results in the following year's first quarter.

In 2019, Huawei's revenue had his a record USD 122 billion. At the time the company was at its peak as the top Android smartphone vendor globally.

In 2019, the USTrump administration imposed a trade ban on Huawei, citing national security concerns, which barred the company from using Alphabet Inc's Android for its new smartphones, among other critical US-origin technologies.

The sanctions caused its handset device sales to plummet. It also lost access to critical components that barred it from designing its line of processors for smartphones under its HiSilicon chip division.

The company continues to generate revenue via its networking equipment division, which competes with Nokia and Ericsson. It also operates a cloud computing division.

(With inputs from agencies)

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