Huawei sees delays to 5G as first quarter revenue flatlines because of coronavirus

Huawei sees delays to 5G as first quarter revenue flatlines because of coronavirus

The Shenzhen-based company reported sales of 182 billion yuan (25.7 billion US dollars) in the first quarter, an increase of only 1.4% from the same period a year earlier. This is a huge drop from the 39% growth it reported for the period from January to March in 2019.

He also warned of a delay in the deployment of 5G networks in Europe.

Tuesday’s announcement, which was light on details, marks just the second time the private company has released its first quarter results.

The coronavirus pandemic has traveled from China to every corner of the globe. Parts of the United States have stalled, sweeping restrictions remain in place across much of Europe, and Japan is facing an increase in cases.

Huawei has warned that restrictions on Covid-19 continue to affect its supply chain. He said he was working with his supplier network “to meet the difficult challenges facing production and resume operations”.

Office meals and mandatory health checks: how Huawei returns to work

Huawei reopened its headquarters in Shenzhen and another nearby office in early February after the government closed.

While the immediate crisis in China may have passed, the world’s largest telecommunications equipment manufacturer and the leading smartphone brand now operate in a very different business environment.

The pandemic has caused “unexpected new challenges, such as economic decline, financial turmoil and shrinking market demand,” said rotating CEO Eric Xu at a press conference last month.

Huawei said on Tuesday that revenues in its domestic market increased in the last quarter as the situation improved in March, but that revenues in other global markets continued to decline.

The deployment of 5G in Europe is delayed

Construction of ultrafast 5G networks is continuing as planned in China, according to Huawei, as well as by analysts from Jefferies and Bernstein.

But “in Europe, it will certainly be delayed, we don’t know how long,” said Huawei spokeswoman Evita Cao.

The global deployment of 5G has also been hampered by unsubstantiated allegations regarding an alleged link between 5G and Covid-19.

Officials in the UK have expressed concern that the recent attacks on cell phone towers were motivated by false conspiracy theories. There is no evidence to support the theory that 5G networks cause Covid-19 or contribute to its spread.

Huawei said it did not know if any of its products were damaged in the attacks.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.