Huawei Says Carrier Business Stable as Revenues Decline: Jeff Kagan

Jeff Kagan  |

Image source: Huawei

2021 performance was a mixed bag for Huawei. In an annual message, Chairman Guo Ping said the company's carrier business was stable and the enterprise operation showed growth during 2021. At the same time, revenue declined by nearly 29%. That’s quite a bit of news, both good and bad, to digest. What can we expect from Huawei in 2022? Let’s take a closer look.

The decline in revenue is a result of the ongoing US Government restrictions here in the United States and certain other countries as well. This is creating a drag on revenues for Chinese tech companies, and this pushback shows no sign of reversing or even slowing. Not yet anyway.

Guo said Huawei worked more closely with existing customers, and its global business is showing growth. Huawei’s new green focus looks like something it will continue moving forward.

Huawei still faces US political pushback with 5G Wireless

He pointed to the changing, unpredictable and political world we occupy today. That means there are more growth challenges to Huawei than ever before. That could also mean, however, that there are more growth opportunities than ever before.

Going forward into 2022, I expect to see Huawei continuing to stay on track as it did in 2021.

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I see the company staying on the same strategic growth path, but I also expect it to actively respond to new and ongoing challenges.

Expect Huawei to continue on course in 2022

I expect Huawei to continue to focus on developing its HarmonyOS, since the company can no longer use Google Android.

HarmonyOS had a weak start, but that also means there is plenty of room for refinement and growth moving forward if Huawei can crack-the-code of a successful wireless and smartphone operating system.

Remember, there are only two dominant operating systems in the world today, Apple iPhone iOS and Google Android. Other systems have always struggled. Huawei is hoping it can be the exception to this rule.

Huawei challenges include US Government and COVID-19

Guo says 2022 will continue with its share of challenges. Based on what I see, Huawei will continue to grow in a marketplace full of many challenges including US pushback and the coronavirus.

Moving forward, security concerns will remain a hindrance to Huawei's global growth.

Based on what we see so far, it looks like Huawei will continue to show strong performance in many existing markets worldwide. At the same time, US pushback will continue to put pressure on the company and revenues.

It is possible that the US pushback may fade at some point in the future, but I do not see that day coming soon. So, I expect things to continue in 2022 like they did in 2021.

I see Huawei's growth and strength continuing to come from countries where it remains a player for the foreseeable future. That means the future is challenging for the company, but it will continue to show growth as 5G wireless continues to move ahead.

 

Jeff Kagan is an Equities News columnist. Kagan is a Wireless Analyst, Technology Analyst and Commentator who follows Telecom, Pay TV, Cloud, AI, IoT, TeleHealth, Healthcare, Automotive, Self-Driving cars and more. Email him at jeff@jeffKAGAN.com. His web site is www.jeffKAGAN.com. Follow him on Twitter @jeffkagan and on LinkedIn at www.linkedin.com/in/jeff-kagan/.

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Equities News Columnist: Jeff Kagan

Source: Equities News

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