Chinese telecoms giant Huawei Technologies has watched its revenue collapse by almost a third so far this year, as it peddles against the waters of US sanctions.
Revenue hit $49.5bn in the six months to June, down 29 per cent, the group reported today.
With its handset business struck by US sanctions, the UK’s decision last year to blacklist its 5G operations and its new divisions still in their early stages, the telecoms heavyweight has been working in less-than-ideal business conditions.
Former president Donald Trump’s administration established a ban in 2019 that prevented carriers in rural America from buying the firm’s equipment.
Huawei filed a lawsuit in March of that year which declared the defence bill “unconstitutional” for barring it from the market, significantly hindering its growth prospects.
The US’ ban on the group also curbed its ability to design its own chips and source components from outside vendors.
Both decisions from the US and the UK have been spurred by fears that the Chinese company is a potential security threat, due in part to its founder and CEO Ren Zhengfei’s background as a former Chinese military engineer.
The firm has been left particularly vulnerable to the global chip shortage, which has seen automotive and technology big-dogs squabble over a reduced supply.
Huawei’s consumer business group, in which handset revenues dominate, also saw a 47 per cent plunge in revenue, to around $20.9bn.
Due to the knocks to its hardware businesses, the group has begun pivoting towards software.