Huawei's sales and profitability continue to tumble, its Q1 numbers show.
The Chinese firm recorded quarterly revenue of 131 billion yuan ($19.8 billion), a 13.9% decline from the same period last year, it said in a statement. Net profit margin was 4.3%, down from 11.1% a year ago.
The company said the fall in profit was mainly due to the further drop in revenue as well as higher investment in new business segments and business continuity.
It said the weaker sales number reflected the continuing decline in device sales following the sale of its Honor handset unit and the loss of its high-end smartphone business due to sanctions.
The company did not release profit or segment numbers for the quarter.
Rotating chairman Ken Hu said the result was in line with forecasts. "Our consumer business was heavily impacted, and our ICT infrastructure business experienced steady growth," he said.
The most difficult year yet
"In 2022, we still face a challenging and complicated business environment."
Earlier this week Hu told a company briefing this year could be the most difficult yet thanks to the combination of the Ukraine war, the pandemic and rising consumer and commodity prices (see 2022 could be even worse, warns Huawei co-chair).
He said Huawei's goal this year is "surviving sustainably."
Huawei has been increasingly under siege over the past three years as the US and allies have hit it with a series of bans that have excluded it from 5G equipment markets and denied it access to advanced components and chips.
For the full year 2021 revenue slumped 29%, with the core carrier equipment business declining 7%, although thanks to the sale of the Honor unit it banked a 76% rise in profit (see Huawei sags under weight of sanctions despite asset sales).
The new Huawei is focused on the cloud and enterprise segments such as smart auto solutions and digital energy as well as its traditional networks business. In recent months it has set up a dozen small cross-functional teams to target sub-verticals such as coal-mining and data center energy.
Hu and other leaders say the company believes it can transition through its current difficulties by investment in innovation and hiring top research talent.
- Huawei sags under weight of sanctions despite asset sales
- 2022 could be even worse, warns Huawei co-chair
- Huawei taps Meng Wanzhou for top executive post
— Robert Clark, contributing editor, special to Light Reading