Richard Yu Chengdong holds Huawei MateX2 collection at a launch occasion in February Photograph: Courtesy of Huawei
Chinese language know-how large Huawei mentioned its income and internet income each grew in 2020 and met targets, regardless of losses inflicted by the US authorities’s blacklisting on its historically sturdy companies.
Income stood at 891.4 billion yuan ($135.93 billion), up 3.8 p.c year-on-year, whereas internet income rose 3.2 p.c to 64.6 billion yuan, the corporate introduced at a press convention titled “Using Via the Evening” at its headquarters in Shenzhen, South China’s Guangdong Province on Wednesday.
The patron enterprise sector’s income reached 482.9 billion yuan, up 3.3 p.c, the corporate mentioned, with development coming from different terminal merchandise corresponding to good watches and laptops.
Huawei’s development was primarily pushed by the home market, with gross sales income from the Chinese language market rising 15.4 p.c to hit 584.9 billion yuan – greater than 65.6 p.c of its complete income.
Enterprise in all areas exterior of China declined. Gross sales income from Europe, the Center East, and Africa fell 12.2 p.c to 180.8 billion yuan, and that from the Americas fell 24.5 p.c to 39.6 billion yuan.
“Over the previous yr, we have held sturdy within the face of adversity,” mentioned Ken Hu, Huawei’s rotating chairman, including that the corporate’s enterprise efficiency was largely in step with its forecast.
“In 2020, our enterprise enterprise group grew quickly, and the telco enterprise remained secure, whereas the patron enterprise sector’s development slowed,” Hu mentioned.
The sturdy 2020 report got here after Huawei was placed on an export blacklist by former US president Donald Trump in Could 2019, and US commerce restrictions on the corporate intensified over the previous yr.
Analysts mentioned the expansion indicated that Huawei’s “survival technique”, which included immediate adjustment of its enterprise strains, had an preliminary impact, whereas warning that the tech large will proceed to be examined.
“The coldest level of winter has not come but, and the impression from the US semiconductor ban will steadily be seen in its monetary experiences this yr,” Jiang Junmu, chief author at Chinese language telecom trade information web site c114.com.cn, informed the International Occasions on Wednesday.
In response to questions regarding its chip provide, Hu informed reporters at a question-and-answer session after the annual report’s launch that Huawei has sufficient stockpiles to fulfill demand from enterprise customers, however “the advance of worldwide chip provide depends upon the restore of the worldwide semiconductor provide chain.”
Jiang, the analyst, cautioned that the most important impression will nonetheless be seen in Huawei’s shopper division, which accounted for 54.2 p.c of the corporate’s complete gross sales in 2020. The patron group overtook Huawei’s core networking gear enterprise to change into the most important enterprise division in 2018.
Huawei’s shopper enterprise income in 2020 managed to develop 3.3 p.c – a stark turnaround from development of 34 p.c in 2019.
The agency additionally disclosed on Wednesday that it is prepared to make use of its self-developed HarmonyOS on smartphones – a system which will function a substitute for Google’s Android system and allow it to reclaim market share that was misplaced abroad.
“Flagship smartphone fashions will nonetheless be launched on schedule,” Hu mentioned, including that he believes Huawei will preserve a number one place within the international smartphone market.
“The yr’s efficiency actually depends upon whether or not Huawei can discover new and highly effective development factors that may make up for the drop within the cell phone enterprise,” Jiang mentioned.
Huawei has been different sources of income as smartphone manufacturing and gross sales waned. Together with synthetic intelligence know-how leased to pig farmers, Huawei can be working with home coal miners and automakers with its state-of-the-art applied sciences.
However analysts cautioned that these operations, through which Huawei primarily supplies know-how, might not be capable of generate comparable ranges of income and income as its cell phone enterprise, a minimum of within the brief time period.
The corporate mentioned that it moved ahead with greater than 3,000 5G-enabled innovation initiatives in additional than 20 industries like coal mining, metal manufacturing, ports administration and industrial manufacturing in 2020.
For the yr forward, Huawei mentioned it’ll proceed to scale up funding in analysis and growth (R&D), additionally one of many essential causes for its income development in 2020.
In 2020, the corporate invested greater than 15 p.c of its income – or 141.9 billion yuan – again into R&D, up 7.8 p.c from 131.7 billion yuan in 2019.