And certainly the consequences have been felt in a shocking way on Huawei. To think that again in March of 2019 Italyafter signing up to the Belt and Road Initiative of Beijing with the yellow-green government, was in advanced dialogue with Huawei for the development of 5G network infrastructures. The then premier Giuseppe Conte met Ren himself in Beijing, on the sidelines of the second Belt and Road forum in April. Then the wind changed, with Washington blowing harder and harder against the Shenzhen giant. Since golden power extended to telecommunications, harbingers of an Italian block that “there is, but you can’t see it“, and one among the many signs of hostility from the Western world.
Huawei beyond smartphones
To the decoupling of operating systemsHuawei responded by developing its own Harmony but smartphone sales plummeted outside China. Problems also from the White House blockade of exporting devices containing components made in the USA, which also involved the Taiwan Semicondutor Manufacturing Company (Tsmc)a world leader in semiconductor manufacturing and assembly that had Huawei on its list of major customers.
It is therefore not surprising that the consumer business has been in decline since then. In 2021, the first drop in sales since 2002. In the first half of 2022 it fell by 25.3% compared to 2021 and 60% compared to the first half of 2020, pushing the overall decline in turnover of 5.9% on an annual basis. Net profit margin was 5%, down from the 9.8% shown by the company’s earnings report released in early August.
There growth of IT infrastructures comfort, given the attempt to diversify revenue streams. Huawei is in fact struggling to diversify its revenue streams as it tried to remake itself as a business services giant. In May, the company set up five new divisions to focus on specific sectors, including the digital finance, energy, artificial intelligence, the digitalization of the manufacturing sector and public services. In recent weeks it has launched a service aggregator of laughs hailing, seeking to erode Didi’s dominance of the Chinese market. And it’s moving on the software for theautomotive industrythe provision of cloud computing and other digital solutions for the public administration and companies. Spending on research and development still remains high, with several initiatives with university, public and health institutions also active in Italy.
Without however renouncing the smartphoneas the latest edition of the series will be presented on 6 September Mate. After launching new laptops, monitors and headsets. Meanwhile, Huawei is looking to raise $ 593 million from its fourth bond sale onshore this year, a sign that it is increasingly drawing on the domestic market to obtain credit. Also in China, four major projects are under construction, including a data center in the province of Guizhou and a production and research and development plant in Shanghai. At the international level, the latest agreement is the one for a broadband infrastructure project in the Solomon Islands, where 161 repeaters will be built together with China Harbor Engineering Company Limited. The Pacific archipelago established diplomatic relations with the People’s Republic of China in the fall of 2019, after breaking those with the Republic of China (Taiwan), and recently signed a security agreement with Beijing.