Huawei, a Chinese telecom gear company, has reported that its profits for 2021 have touched a record high despite being out of fresh contracts from countries such as the United States (US), India, and more. Be it European nations, India or the US; the company is not welcomed for fresh 4G expansion contracts for 5G gear.
It all started with the US and China trade and technology standoff. Donald Trump, former president of the US, had crippled Huawei over cybersecurity and espionage concerns. However, despite all the bad publicity and lost business, Huawei has registered record net profits for 2021.
Huawei Net Profits Reach $17.8 Billion
According to an AFP report, Huawei’s net profits reached 113.7 billion yuan ($17.8 billion) last year, marking a 76% YoY rise. However, the overall revenues of the company reduced 29% YoY because it couldn’t bag fresh contracts.
One of the biggest hits for Huawei was when it was barred by Google to use its Android services for smartphones. This made users switch from Huawei devices to other company smartphones.
In the consumer business, Huawei’s revenues slumped by 50% YoY to 243 billion yuan. The company is still positive about the future and has shifted its focus back to the Chinese market. Huawei is still a big telecom gear vendor and many countries still allow the company to be a part of its future networks.
In India, the government hasn’t banned Huawei but hasn’t included the company on its trusted list either. Huawei’s consumer business has been badly hit, but the company is still focusing on building a customer base in countries such as India.
In India, the company’s consumer business is focusing on improving the R&D culture locally. It is worth noting that out of China, Huawei’s largest R&D center is in India. But things don’t look good for the company, given that it is losing business and contracts day by day.