The Chairman of Huawei Technologies has just stated that the company aims on returning to the smartphone ‘throne’ despite its handset operations being crippled by the US sanctions.
For those unaware, the former US President Donald Trump had enforced new sanctions on the Chinese tech giant and had it placed on the export blacklist back in 2019. This banned the company from sourcing key technologies that originate from the US, which affected its ability to design its own chips and acquire components from its supply chain. Company’s Chairman Guo Ping stated in a recent Q&A with staff “Everyone knows that phone chips need advanced technology in a small size with low power consumption. Huawei can design it, but no one can help us make it: we’re stuck.”
Although, Guo believes that this issue is solvable, adding that “Huawei will continue to exist in the field of mobile phones and with continuous advances in chip production, the smartphone throne will eventually return.” Despite being one of the largest smartphone makers in the world just two years ago, the brand has since fallen off the the top 5 vendor lists in recent times. Furthermore, the company even had to sell off its budget smartphone unit, Honor, to keep the brand alive.
As of right now, Huawei’s revenue has declined by 29 percent in the first half of this year, which marks its biggest fall. The fall in revenue was especially notable in its consumer business operations like smartphones that saw a sizeable 47 percent decline in revenue, falling to 135.7 billion Yuan (roughly 21 billion US Dollars).
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