Apple and Huawei caused big revenue loss for OFILM

Recently, the OFILM group of corporations published its first half of the 2022 revenue report. While inspecting the information, we found that the company has collected a loss of 870 million yuan [12.5 million USD]. And seems like, the credit for the huge revenue loss of OFILM goes to Apple and Huawei.

OFILM is an advanced technology manufacturing and assembly company. The products and technologies help to build products related to smartphones, smart driving, and other consumer-based electronic devices.

How? Let’s learn about it in more detail.

To begin with, OFILM scored revenue of 7.78 billion yuan [1.12 billion USD] in the first of this year. In comparison to the previous year, when the company gained 11.74 billion yuan [1.69 billion USD], shows a yearly decrease of 2677.73 percent.

While the net profit of OFILM was around 33.897 million yuan [49 million USD] last year. This year, the company has drowned in a net loss of 870 million yuan [12.5 million USD]. And some or the other way, OFILM believes that the tech giants like Huawei and Apple are one of the reasons for the declination.

What are the other main reasons?

The corporation believes that in the first half of this year, some severe hurdles kept on arising in the global economic development. Consequently, the global supply chain remained stiff at the time. While industries like consumer electronics and smart cars have faced issues with insufficient raw materials and supply shortages.

On the flip side, manufacturers like Huawei and Apple have constantly maintained their position in the market by introducing extremely high levels of technology. Their strategic investment is quite advancing and can bind the consumers and their interests in their products.

However, the termination of purchasing relationships led by Apple, and the chip supply restrictions of Huawei made the company sink in the market. Describing some other consequential reasons for the downfall, the company said the following points:

• Affected by the elimination of purchasing other high sectors by Apple customers, which made a significant drop on the yearly basis.
• Changes in the international trade markets and global epidemics have affected consumer demands a lot.
• Restrictions on the supply of chips from Huawei for the smartphone business brought down the company’s products and made them low on the consumer platform.
• The exchange rate of USD to RMB fluctuated the revenue of OFILM and made a negative impact on the overall profits.

Though the company is still making efforts to come up with the challenges. Yet, we cannot say which efforts will bring positive changes to the OFILM group in the future.

[Source]