Revenue from tech company Huawei is falling sharply due to US sanctions

Huawei Technologies’ sales fell sharply in the first quarter of the year. Bloomberg News reported that this is based on numbers posted on Shanghai Clearing House, which is a Chinese government website that handles financial transactions. The reason for the decline is the US sanctions against the Chinese technology company.

Among other things, the United States has banned the use of Huawei technology in communications and networking equipment. Huawei has been accused of spying by the United States for some time. This was categorically rejected by the company itself. However, the sanctions are doing great damage to the company that previously rivaled tech groups such as Apple and Samsung.

As a result of the sanctions, which are mainly crippling the smartphone division and advancing the chip division, Huawei is increasingly focusing on other areas. This includes smart agricultural applications, healthcare, cloud software, and electric cars.

Huawei’s sales fell for the second consecutive quarter. The first quarter of 2021 saw a decline of 17 percent year-on-year to 150 billion yuan (19.1 billion euros). The sharp contraction came on the heels of an 11 percent drop in business volume in the fourth quarter of 2020.

However, the Chinese company’s profits rose in the last quarter as costs fell. In the first quarter, Huawei posted a profit of nearly 17 billion yuan, more than a quarter more than the same period last year.

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