Today, Huawei released its financial results for the first quarter of 2021, which were in line with expectations. Huawei’s revenue in the first quarter was CNY152.2 billion, down 16.5 percent year on year. Its network business grew steadily, but revenue from its consumer business fell, owing in part to the sale of the Honor smart device brand in November 2020. Huawei’s net profit margin increased by 3.8 percentage points to 11.1 percent year over year, owing to the company’s ongoing efforts to improve operational quality and management efficiency, as well as a patent royalty income of US$600 million.
“2021 will be another challenging year for us, but it’s also the year that our future development strategy will begin to take shape,” said Eric Xu, Huawei’s Rotating Chairman. “We thank our customers and partners for their ongoing trust. No matter what challenges come our way, we will continue to maintain our business resilience. Not just to survive, but do so sustainably. As always, we will remain focused on the needs of our customers and keep delivering practical business value.”
Huawei is leading the charge to fully realize the benefits of 5G. It is assisting carriers around the world in deploying 5G networks, meeting consumer and industry demands while improving its own delivery efficiency. It is continuing to improve its software engineering capabilities and increasing investment in the software sector in order to gradually increase the percentage of software and services in its overall revenue mix.
“As always, we remain committed to technological innovation and investing heavily in R&D as we work to address supply continuity challenges caused by restrictions in the market”, stressed Xu. “We will continue making breakthroughs in basic science and pushing the frontiers of technology.”