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The marginal revenue growth in Q2 comes despite the massive plunge the company’s business took in the first quarter.
Chinese multinational technology corporation, Huawei Telecommunications equipment company has released its second quarter performance report in which it recorded a marginal growth of 1.4% from a year-ago period. According to the published date, Q2 revenue came in at 170.6 billion yuan ($25.5 billion).
Huawei has survived a lot of tough business conditions since 2020, having to battle with the imposed limitations from the President Donald Trump administration to COVID-19 impairment and subsequent shortage in chips. These have generally been impacting its revenue growth and bottom lines for the past few quarters.
The marginal revenue growth in Q2 comes despite the massive plunge the company’s business took in the first quarter where revenue slumped 14% on a yearly basis. Since the third quarter of 2020, Huawei’s revenue has been nosediving, recording a double-digit decline along the way, a trend that makes this Q2 revenue push a very significant milestone.
The reported Q2 revenue is reflected in some of its key business segments, particularly the enterprise unit which includes cloud and business services. While Huawei does not give a detailed breakdown of its business segment’s core performance, the enterprise unit shot up by 28% to 54.7 billion yuan in the first half of the year.
While the enterprise unit came off as a high-performing outfit of its three core business segments, Huawei also recorded impressive leaps from its carrier business. This business segment showcased the largest leaps, with year-on-year growth of 4% to 142.7 billion yuan in the first six months of 2022.
As noted, Huawei’s device business has not been faring well as the general semiconductor shortage alongside the macroeconomic conditions has pushed its revenue to 101.3 billion yuan in the first half of the year with a 25% decline from the year-ago period.
Huawei Revenue Growth and Its Auto Contribution
Huawei, like other mainstream technology behemoths, has been diversifying its capital, and one of its most ambitious projects ever is its venture into the electric car business which falls into its device category.
The company has partnered with Sokon’s subsidiary, Seres, a Silicon Valley-based automobile startup and the linkup will see Huawei provide the operating system for a new car brand called Aito.
While Aito is a relatively new brand, its first product, M5 launched last year and has delivered as much as 26,000 as of the end of July this year. The startup is set to introduce its next product dubbed the M7 whose delivery is scheduled for next month.
As one of its strategies to bolster its revenue, Huawei says it wants to commit as many funds to its auto business as possible with a $500 million injection already planned. Huawei is also looking to increase its engineering manpower by 2000 as it looks to take its capital injection into Research and Development to $1.5 billion.