Huawei sales drop off in ’20; blame falls on U.S. sanctions

The Chinese technology giant Huawei reported sharply slower growth in sales last year, which the company blamed on U.S. sanctions that have both hobbled its ability to produce smartphones and left those handsets unable to run popular Google apps and services, limiting their appeal to many buyers.

Huawei said Wednesday that global revenue was around $137 billion in 2020, 3.8% higher than the year before. The company’s sales growth in 2019 was 19.1%.

Over the past two years, Washington has placed strict controls on Huawei’s ability to buy and make computer chips and other essential components. U.S. officials have expressed concern that the Chinese government could use Huawei or its products for espionage and sabotage. The company has denied that it is a security threat.

In recent months, Huawei has continued to release new handset models. But sales have suffered, including in its home market. Worldwide, shipments of Huawei phones fell by 22% from 2019 to 2020, according to the research firm Canalys, making the company the world’s third-largest smartphone vendor last year. In 2019, it was No. 2, behind Samsung.

Huawei remained top dog last year in telecom network equipment, according to the consultancy Dell’Oro Group, even as Britain and other governments blocked Huawei from building their nations’ 5G infrastructure.

Announcing the company’s financial results Wednesday, Ken Hu, one of its deputy chairs, said that despite the challenges, Huawei was not changing the broad direction of its business. Another Huawei executive recently revealed on social media that the company was offering an artificial intelligence product for pig farms, which some people took as a sign that Huawei was diversifying to survive.