HomeTechnologyHuawei First Half Profits Drop Amid Weakening Demand

Huawei First Half Profits Drop Amid Weakening Demand

Huawei Technologies announced on Friday that its net profit for the first six months of the year plummeted by 52%. Total revenue for the period was 301.6 billion yuan ($44.73 billion), a year-on-year decline of 5.9%.

According to the Chinese tech company, the dramatic decline in sales comes as a result of both the rollout of U.S. technology restrictions and weakening consumer demand resulting from tougher economic conditions and a consequential drop in consumer spending. Huawei’s profit margin for the first half of 2022 narrowed to 5% with a net profit of 15.08 billion yuan, a decline from the 31.39 billion yuan earned a year earlier.

Other market conditions that worked against Huawei’s device business include a string of COVID-19 disruptions within China as well as supply chain challenges that crippled smartphone and laptop sales. During the second quarter of 2022, the Chinese smartphone industry fell 14.2% year-on-year to what was its lowest sales volume in a decade.

Despite the company’s decline in its smartphone sales business, Ken Hu, Huawei’s rotating chairman, affirmed that the company’s ICT infrastructure business remained steady, in fact, maintaining its steady growth rate.

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