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| Huawei loses $ 12 billion in sales due to the United States |
Huawei released its annual report for 2019 today, which shows that slowing profit growth in the past year was due to the impact of the US blacklist on the work of the Chinese technology giant, and a company executive told CNBC that the new corona affects the virus is unclear in its work.
The Chinese company experienced the smallest annual increase in three years as the United States took strict measures to limit global expansion due to security concerns that were affected by weak foreign sales.
Huawei's sales increased 19.1% last year to about $ 123 billion, thanks to a 34% increase in sales in the consumer business unit, including smartphones, and a net profit of $ 9 billion, up 25%. Versus 5.6%. a year ago.
The trade embargo imposed on the company since May last year made it difficult for the company to purchase parts and software in the United States or sell its products in the United States, which prevented the company from entering key markets and affecting its competitiveness outside China.
"We need to adapt more closely to the long-term constraints imposed by the list of companies while addressing the impact of the ongoing coronavirus pandemic," President Liang Hua said in a report posted on the company's website. .
"Consumer activity is our main growth activity," said Vincent Bang, head of Huawei's business unit in Western Europe, on the company's financial results in 2019. He described 2019 as the company's biggest challenge.
The company accused the black list of reducing its expected profits by about 12 billion dollars, and said that we failed to achieve our adjusted target (135 billion dollars) and we lost 12 billion dollars. .
Consumer companies (including smartphones and laptops) accounted for more than 54% of the company's total sales in 2019. Despite being the hardest hit sector, sales were $ 66.93 billion, $ 10 billion less than last year, and the dollar More than the company's goal.
The company's sales in China increased by 36.2%, while sales in the Asia Pacific region (excluding China) decreased by 13.9%, while sales in Europe and the Middle East decreased by only 0.7%. .
Huawei led sales of smartphones in China, accounting for 38.5% of the smartphone market in 2019, down from 27% in the same period last year, partly due to the growing national sentiment after the company squeezed in the United States. improvement.