Huawei recorded a 16.5% drop in sales in the first quarter of 2021. Cornered by US sanctions, the Chinese group is also suffering from the recent sale of its low-cost subsidiary, Honor. The firm is preparing for another difficult year.

huawei installation usine france - Huawei announces 16.5% drop in sales following the sale of Honor
Credit: Huawei France

This Wednesday, April 28, 2021, Huawei announced its financial results for the first quarter of 2021, report our colleagues from ZDnet. Between January and March 2021, the Chinese giant noted a 16.5% drop in sales consumer products. This figure therefore includes the smartphone activity of the manufacturer.

Unsurprisingly, Huawei is suffering from the sale of its subsidiary Honor. Last November, the firm indeed sold Honor a consortium made up of forty Chinese companies for the sum of 12.8 billion euros. Thanks to this maneuver, Honor escapes the American sanctions that have paralyzed Huawei since May 2019. On the other hand, Huawei finds itself deprived of the sales made by the former subsidiary.

Huawei is preparing for a difficult year 2021 despite the arrival of HarmonyOS

Over the period, the firm nevertheless managed to generate a turnover of 152 billion yuan, in particular thanks to the performance of its activity of network equipment supplier and a patent royalty of 600 million dollars. Huawei also claims to realize “Continuous efforts to improve the quality of operations and the efficiency of management”.

Private license Android, Google applications and its American suppliers, Huawei expects another tough year. “2021 will be another difficult year for us, but it is also the year when our future development strategy will start to take shape. Whatever challenges we face, we will continue to maintain our business resilience. Not only to survive, but also to do so sustainably ” tries to reassure Eric Xu, the current president of Huawei.

This year, Huawei will finally deploy the first stable version of HarmonyOS, its in-house alternative to Android, on its smartphones. With this in-house and modular operating system, the Chinese group seeks to emancipate oneself from Android and Google. Believing that many other Chinese companies could find themselves in the sights of the United States, Huawei offered its mobile OS to other manufacturers based in China. For its part, Xiaomi has already refused the proposal. Moreover, Eric Xu does not expect that the American embargo against the company will end up being lifted. Will HarmonyOS make it possible to go up the slope? We await your opinion in the comments.

Source: Zdnet