On October 29, Huawei released its business results for the first three quarters of 2021. According to the report, the company achieved sales revenue of 455.8 billion yuan during the period, down 32% year-on-year. The company also posted a net profit margin of 10.2%, compared with 8% in the same period last year.
“Overall performance was in line with forecasts,” said Guo Ping, Huawei’s Rotating Chairman. “While our B2C business has been significantly impacted, our B2B businesses remain stable. Through our ongoing commitment to innovation, R&D, and talent acquisition, and rigorous attention to operating efficiency, we are confident we will continue to create practical value for our customers and the communities in which we work.”
Huawei did not disclose the specific revenue of each of its business segments. In general, however, the consumer business revenue has seen the largest decline among all in terms of the company’s first half-year performance. In this period, this segment only garnered a revenue of RMB 135.7 billion, down 46% year-on-year. The main reason was the falling sales of mobile phone sales, caused by the short supply of chips.
In the report on China’s smartphone sales in the third quarter of 2021 released by Counterpoint Research, Vivo, OPPO and HONOR placed in the top three, with market shares of 23%, 20% and 14.7% respectively. They were followed by Xiaomi and Apple, and Huawei, which only has a market share of 8%.
Xu Zhijun, the company’s former rotating chairman, said in an earlier interview that Huawei still can’t get an adequate amount of chips. According to him, some B-end businesses of the company have also been affected by the cut-off of the chip supply. As a result, the operation of these businesses had to rely on earlier inventory, which required joint efforts of the domestic industrial chain. However, he also revealed that the United States has provided the company with a supply license for some low-end automobile chips.