Huawei Technologies Co Ltd (HWT.UL) estimated on Friday that its 2022 revenue had reached an equilibrium, signaling a reprieve from the sales decline caused by U.S. sanctions.
Rotating chairman Eric Xu expressed a hopeful sentiment in his New Year’s letter, which was released to the media. He noted that the “U.S. restrictions are now our new normal, and we’re back to business as usual.” The letter revealed that the revenue had only increased by 0.02%.
Xu projected that the revenue for the year would be 636.9 billion yuan ($91.53 billion), just a slight improvement from the 636.8 billion yuan in 2021 when the effects of U.S. sanctions caused a 30% year-on-year decrease. Though still significantly lower than the record-breaking $122 billion in 2019 when the Chinese tech giant was the world’s largest Android smartphone vendor.
The U.S. Trump administration in 2019 enforced a trade restriction on Huawei due to national security apprehensions, prohibiting the company from making use of Alphabet Inc’s (GOOGL.O) Android for its new smartphones and other fundamental U.S.-origin technologies. This resulted in a drop of its handset device sales. Nonetheless, Huawei still generates income from its networking equipment and cloud divisions and has committedly put funds into the electric vehicle (EV) industry.