Huawei Technologies Co Ltd, a Chinese telecoms equipment firm hit by US sanctions, expects revenue to have dropped around 30% in 2021 and said it will have more challenges in the New Year.
In a letter to staff on Friday, rotating chairman Guo Ping predicted that revenue for the year will be 634 billion yuan (about $99.48 billion). Analysts had projected a year-on-year decrease of 28.9%.
“Next year will, without a doubt, bring its own share of difficulties,” Guo said. “I’m content with Huawei’s 2021 business performance,” he continued.
The letter, published on the firm’s website, read: “An unpredictable business environment, the politicization of technology, and a growing deglobalization movement all pose significant risks.”
In 2019, the Trump administration put a trade embargo on Huawei, alleging national security concerns, which prohibited it from using Alphabet Inc‘s (GOOGL.O) Android for its new smartphones.
The US sanctions, as well as a weaker domestic demand due to the coronavirus, had a detrimental impact on Huawei.
“We must adhere to our plan and respond rationally to outside forces that are beyond our control,” Guo added.
The letter added that Huawei will focus on information and communications technology (ICT) infrastructure and smart devices.
Huawei’s third-quarter revenue dropped 38 percent when compared with the same period a year earlier, according to its most recent earnings release. The company’s revenue for the first three quarters fell by about a third compared to last year.