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