Huawei’s Profit Dives 67% After U.S. Sanctions Wallop Phone Arm

Huawei has allocated 22.4% of its 2021 sales to develop chips, telecom gear and smartphones that could stand free from sanctions imposed by the U.S. Photo: Bloomberg

(Bloomberg) — Huawei Technologies Co. profit fell about 67% in the first quarter as the Chinese telecom-equipment giant continued to battle crippling U.S. trade and investment sanctions.

Revenue declined 14% to 131 billion yuan ($19.8 billion) in the three months through March, the closely held company said Thursday in a statement. Net profit margin narrowed to 4.3%, which translates to 5.6 billion yuan in net income. That compares with a margin of 11.1% and net income of 16.9 billion yuan a year earlier.