Chinese tech giant Huawei Technologies shared an estimate on Friday that predicted it’s 2022 revenue would remain flat. This means that despite the increasing sanctions on China, and in particular, the decline in sales that Huawei and other Chinese companies have seen has halted.
Huawei’s sales for this year grew by only 0.02 percent. And, despite rotating chairman Eric Xu struck an upbeat tone in the company’s annual New Year’s letter, where he revealed the figure.
“US restrictions are now our new normal, and we’re back to business as usual,” Xu wrote in the letter addressed to staff and released to the media.
According to Xu, revenue is expected to be 636.9 billion yuan or $91.53 billion.
That represents a tiny increase from 2021, when revenue hit 636.8 billion yuan, and marked a 30 percent year-on-year sales decline as the US-issued sanctions on the company took effect.
The timing and contents of Xu’s letter were a little unusual. First, the letter or the issued statements did not mention whether Huawei’s profitability had grown or declined. Secondly, the company typically discloses its full annual results in the following year’s first quarter, which means on this particular occasion, they have announced their results pre-emptively.
Things haven’t gone entirely back to normal for Huawei, though. Revenue for 2022 remained well below the company’s record of $122 billion in 2019. In 2018-2019, the company was at its peak as the top Android smartphone vendor globally.
In 2019, the US administration, led by President Trump, imposed a trade ban on Huawei, citing national security concerns. This barred the company from using Google’s Android operating system for its new smartphones. Huawei got cut off from using some seriously other critical and crucial technologies that originated in the US.