Huawei Technologies’ sales in the first quarter of 2022 were 131 billion yuan.
The Chinese company’s sales have been declining over the past six quarters.
Huawei’s net profit for the first three months of 2022 was 16.9 billion yuan ($2.58 billion), down 67% from the same period the previous year. The company’s profitability has nearly quadrupled over this time, from 11.1 percent to 4.3 percent.
Huawei noted that the considerable drop in earnings is mostly due to the company’s active and massive expenditures in research and development of its own technologies, which Huawei requires to balance the impact of US sanctions and begin developing its own technologies.
For the past two years, Huawei has been subject to US restrictions that prohibit American and international firms from supplying Huawei with US technology. The fall in earnings is mostly due to Huawei’s aggressive investment in research and development of unique technology to counteract the effects of US sanctions, according to a company spokeswoman.
As a result, the corporation spent 21% of its yearly revenue on research and development last year. According to a business official, Huawei boosted its investment in research activities in the first quarter.
Huawei began actively searching for skilled employees and developing other businesses to compensate for the reduction in smartphone sales. While the business has not yet entered EV manufacturing, it is actively pitching its Harmony OS operating system and other technology to Chinese automakers.
According to the latest information, at least two more Huawei-powered workstations will be introduced this year. The Aito M5, which has already begun delivering, was the first model featuring Harmony OS.
Huawei’s quarterly earnings were in line with expectations, according to current Chairman Ken Hu. Chairmen are appointed by rotation from top management at the firm. He has been President since April 1 and will leave office on September 30. He chairs the Global Cyber Security and User Privacy Protection Committee on the board of directors.