Telecom: disappointing results for Chinese giant Huawei in 2020
In 2020, Huawei recorded a turnover of nearly 116 billion euros.
Less than expected, according to experts.
© AFP / STR
Text by: Agnieszka Kumor
3 min
Chinese equipment manufacturer Huawei announces mixed 2020 results.
Admittedly, the telecom giant has managed to generate a profit up more than 3%, but its turnover is barely.
Due, in particular, to the pandemic and American sanctions.
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In 2020, Huawei recorded a turnover of nearly 116 billion euros.
Less than expected, according to experts.
The Shenzhen group had found itself
in the crosshairs of the Trump administration
, which placed it on its commercial blacklist accusing it of spying for the benefit of Beijing.
Since 2019, Huawei has been deprived of American technologies, in particular applications, electronic chips or telephone antennas.
American measures toughened
Joe Biden's arrival at the White House ended the Trump era, but not the Sino-American rivalry.
Huawei, the world's number one in telecoms, has made this bitter report.
In early March, the US telecoms regulator again classified it as a threat to national security.
For Americans, Huawei is still a risk, as are Chinese equipment manufacturer ZTE, radio communications group Hytera Communications, as well as two manufacturers in the video surveillance industry.
Thus, the new president follows in the wake of his predecessor when it comes to the fight against the growing hegemony of Chinese technology groups.
The progression of its competitors
And then, Huawei also seems very affected by the coronavirus pandemic.
In any case, much more than its competitors.
Unlike 2019, the group has not published the number of smartphones sold.
But according to the Canalys design office, the Chinese juggernaut
saw its sales drop by 22% compared to 2019
.
It is not even in the top 5 of the most purchased manufacturers in the fourth quarter of 2020, unlike Xiaomi which saw its sales jump by 31%.
Chinese manufacturer Oppo also made good progress in the fourth quarter (+ 15%).
This brand has already become number 1 in China by dethroning Huawei.
For the whole of 2020, Huawei remains in third place in the world ranking, after Samsung and Apple.
But it is not at all sure that he will manage to stay at the top of the table in the years to come.
Accelerated diversification and the 5G market
Suddenly, the brand decided to accelerate its diversification by positioning itself on cloud computing, the cloud.
The Shenzhen group is also facing increasing pressure on the 5G front, the fifth generation of standards for mobile telephony.
Its deployment by Huawei
arouses reluctance in the world
.
The Americans do not hesitate to put pressure on their allies, especially in Europe, to sever ties with the Chinese company.
It is gradually losing its lead in the global deployment of 5G to the benefit of the Finnish Nokia and the Swedish Ericsson.
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