Sales are falling fast at Huawei, the Chinese tech titan that American officials have deemed a national security threat and sought doggedly to undermine.
The company said on Friday that its shrinking smartphone business caused overall revenue for the first half of the year to slide by nearly 30 percent from last year, to about $50 billion. Its net profit margin, however, was 9.8 percent, up from 9.2 percent last year.
As a closely held company, Huawei is not legally obligated to report its earnings. It publishes only a small selection of financial results, and not on a quarterly basis.
“Our aim is to survive, and to do so sustainably,” Eric Xu, one of Huawei’s deputy chairmen, said in a statement on Friday.
Over the past few years, Huawei’s ability to work with the international computer chip industry has narrowed because of a series of rules that were imposed by the Trump administration. It has become extremely hard for the company to produce the cutting-edge phones that had made it a global Goliath not long ago. Huawei denies that its products threaten any nation’s security.
The U.S. sanctions also prevent Huawei devices from running Google’s most popular apps. That has been driving away customers outside of China for awhile.
But even within China, where many Google apps have long been blocked, Huawei’s handset business is sinking quickly. In the latest quarter, for the first time in over seven years, Huawei was not one of China’s five best-selling phone brands, according to the market research firm Canalys. The top five, in order, were Vivo, Oppo, Xiaomi, Apple and Honor.
Honor had been a Huawei brand until it was spun out late last year to put it out of reach of the U.S. restrictions. That contributed to the drop in Huawei’s smartphone revenue, a company spokesman said.