Huawei saw revenue fall 16.5% in the first quarter compared to a year earlier, hurt by a dip in sales after selling its budget smartphone unit Honor in November, reported Reuters.
Revenues were RMB 152.2 billion ($23.46 billion) in the first quarter, it said on Wednesday.
But it said net profit margin rose 3.8 percentage points compared to a year earlier to 11.1%, it said, as the company cut costs and received a boost from $600 million in royalty payments.
“2021 will be a challenging year for us, but it’s also the year that our future development strategy will begin to take shape,” Huawei’s rotating chairman Eric Xu said in the statement.