Huawei
Huawei reportedly looks for profit in UK despite sanctions
A new report says that Huawei is expecting to earn profit in the UK this year, despite sanctions. Describing its losses in 2023, the company reportedly said that it will continue to focus on products and services that are unaffected by foreign restrictions.
Inputs reveal that Huawei has seen a significant decline in 2023 due to the UK ban. The company’s pre-tax profit went down from £17.5 million to £11.4 million last year.
The overall turnover of the company based on the products shipped in the UK was quite low for 2023. But this year, Huawei seems optimistic about its profit in the UK regardless of sanctions on 5G network equipment and other trade challenges.
According to CITYA.M., Huawei is expecting to remain profitable in the UK this year. The company said that it will focus primarily on the sale of those products and services that are free from the UK or U.S. restrictions.
Huawei reportedly states that last year’s business revenue dropped by 36.1% due to UK sanctions. The foreign authorities prohibited its telecoms from using Chinese 5G network equipment. They even directed the companies to remove and replace Huawei/ZTE equipment from the core network completely by 2027.
Another restriction was on GMS (Google Mobile Services) for Huawei devices which resulted in certain losses. But the company hopes to move forward at a good pace.
“Although the business scale is expected to decline as a result of this external environment, the directors believe the company is well positioned to continue its sales and profitability in 2024.”
Huawei reportedly looks for profit in UK despite sanctions (Image Credits: Huawei)
The company further notes that profit and loss are part of the business. Even if the online sales in the consumer business remain stable or network tech engineers continue to work at customer sites, there could still be a fall this year. But it hopes for good.
UK banned Huawei from the 5G network market in 2020. The reason was the same as the U.S. sanctions: security. The restrictions continued and are pushing away the Chinese tech equipment completely from the region.
However, Huawei is confident in executing its business plan in the UK. The plan is to strengthen the technical, operational, and financial aspects to remain profitable.
[Source]
