Huawei Technologies on Friday said its device business, which includes smartphones and other consumer electronics, is facing its “most challenging” time ever this year as the company continues to wrestle with a US clampdown and economic uncertainties, reports Nikkei Asia. The Chinese tech company’s revenue for the first half of 2022 dropped 5.9% on the year to RMB 301.6 billion ($44.8 billion), while its net profit margin declined to 5% from 9.8% a year ago, Huawei said in a brief press statement on Friday.
“2022 will probably be the most challenging year historically for our devices business,” the company said, explaining that the segment was hit hard by COVID-19 and the global economic downturn. “As our smartphone business has been heavily impacted, in the device business, we have decided to focus on developing innovative products in five major user scenarios: smart office, fitness and health, smart home, easy travel, and entertainment.”
Huawei, once the world’s largest smartphone maker, has been cut off from supplies of cutting-edge chips since the US added it to a trade blacklist. It also lost the ability to work with industry-leading chipmakers such as TSMC and Samsung Electronics due to the US ban.