Huawei will not give up on the decline in phone sales: it will still maintain its leading position in the market

Huawei released a revenue report for the first half of 2021, with sales revenue of 320.4 billion yuan and a net profit margin of 9.8%. Revenue fell 29.43% year on year, but Huawei said that the overall operating results were in line with expectations.

Among Huawei’s three major businesses, operator business revenue is 136.9 billion yuan, corporate business revenue is 42.9 billion yuan, and consumer business revenue is 135.7 billion yuan.

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Compared with the past, Huawei’s enterprise business has increased by 18% year on year. The most serious decline is the consumer business. In the first half of the year, Huawei’s consumer business achieved revenue of 135.7 billion yuan, a year-on-year decrease of 46.95%.

This is mainly due to the decline in sales of Huawei’s mobile phones. Due to the disruption of the supply chain, Huawei’s mobile phones have been out of stock. Huawei is no longer in the top five in the domestic market.

However, Huawei does not intend to give up and is still maintaining mobile phone shipments. The recently released P50 series is not compatible with 5G and it can only run 4G. It is reported that Huawei will not be able to solve the 5G problem until the middle of 2022.

At the press conference, Huawei’s consumer business CEO Yu Chengdong stated that “the four rounds of US sanctions restrict Huawei’s 5G mobile phones, resulting in 5G chips that can only be used as 4G.”

Regarding the development of the mobile phone business, in March this year, Huawei’s rotating chairman Hu Houkun said that from last year’s point of view, the mobile phone business has been greatly affected.

Judging from this year, due to the unclear supply situation, it is difficult to predict the changes in Huawei’s mobile phone business. However, the flagship model that Huawei plans to launch every year will be launched as planned.

Hu Houkun said that in the next few years, Huawei’s series of mobile phones will remain the leader in the market.