Huawei's income has dropped to its lowest level ever.

 

In the first half of 2021, Huawei reported its largest-ever revenue drop, down nearly 30% to Rmb320 billion (£35.5 billion).

Following US sanctions, the company sold a portion of its mobile phone business, which analysts believe contributed to the dip. Sanctions make it difficult for Huawei to get US-made components and software. The consumer electronics division of Huawei, which includes phones, saw a 47 percent drop in revenue. The impact of the chip scarcity on Huawei's business was also addressed.

"US sanctions have caused enormous obstacles to our business operations and day-to-day work," Richard Yu, the company's consumer products president, said earlier this year as the company announced the introduction of a new phone.

As a result of the sanctions, Huawei's products are no longer entirely compatible with Google's Android operating system, pushing the company to expand its usage of its own Harmony OS.

Huawei's telecommunications equipment division also reported a drop-in sale. The company's representative told Reuters that this was owing to China's delayed 5G rollout.

"Our mission is to survive, and to do so sustainably," Chairman Eric Xu said in a statement.