Huawei Technologies s benefite plummeted 46% in the first quarterwhile revenue barely grew.
Net income fell to 3,000 million yuan (394 million euros) in the first three months of 2023, according to calculations of calculations of Bloomberg based on the 2.3% profit margin announced on Friday.
This marked the first annual decline in profits for Huawei in more than a decade, as years of US sanctions have dented the smartphone division that has, in the past, stood up to Apple and Samsung.
Huawei executives they committed to maintaining a high level of investment in R&D in order to remain competitive in the market. The Shenzhen-based company had announced research spending of 161.5 billion yuan in 2022, about a quarter of its annual sales.
Huawei has made some progress in developing alternatives to American technology, including chip design tools and software that it can no longer buy from American suppliers.
In the long term, Huawei remains vulnerable to US-China tensions. The United States has applied strict controls on the export of chips and chip-making equipment to China. Taiwan Semiconductor Manufacturing Co (TSMC), the world’s largest contract chipmaker, is unable to make next-generation silicon for Chinese customers like Huawei.
