Huawei posts drop in revenue for first quarter

Huawei posted a 16.5 percent drop in revenue in the first quarter and Eric Xu, its rotating chairman, said 2021 would be “another challenging year.”

Revenue reached 152.2 billion yuan (US$23.4 billion) with a decline in consumer business as a result of the sale of the Honor business in November and in the race of US sanctions. 

Huawei's net profit margin for the quarter was up 3.8 percentage points year on year at 11.1 percent, thanks to improved quality of operations and management efficiency as well as patent royalty income of US$600 million. 

The company said it plans to unleash the value of 5G, software and services.

It recently announced that it would cash in patent fees from firms, covering both 4G and 5G networks.

It is also expanding aggressively on sectors like the cloud and car businesses, which began selling Huawei system-powered cars this month.