Beijing, Dec. 31 (BNA): Chinese telecom equipment giant Huawei Technologies (HWT.UL), hit by US sanctions, expects 2021 revenue to fall by about 30% and expects challenges to continue in the new year.
Revenue for the year is expected to be 634 billion yuan ($99.48 billion), alternate President Guo Bing said in a New Year’s address to employees on Friday.
That represented a 28.9% drop from 2020 revenue of 891.4 billion yuan, Reuters reported.
Guo said next year will “bring its fair share of challenges” but he is satisfied with Huawei’s 2021 business performance.
“The unpredictable business environment, the politicization of technology, and the growing deglobalization movement all present serious challenges,” reads the letter posted on the company’s website.
In 2019, the Trump administration imposed a trade ban on Huawei, citing national security, that prevented the company from using Alphabet Inc (GOOGL.O) Android for its new smartphones, among other significant US-origin technologies.
US sanctions, along with weak domestic consumption due to the coronavirus, have affected Huawei.
“We need to stick to our strategy and respond rationally to external forces beyond our control,” Guo said.
The letter said Huawei will continue to focus on information and communications technology (ICT) infrastructure and smart devices.
Huawei’s latest earnings report showed that third-quarter revenue fell 38% compared to the previous year. Revenues for the first three quarters fell by nearly a third year over year.
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