Huawei turns to new avenues to offset losses caused by US sanctions

Huawei turns to new avenues to offset losses caused by US sanctions

by Nandita Bhardwaj

Almost six months after a severe blow was struck to its smartphone business by the Trump administration struck, Huawei Technologies Co., the leading Chinese telecom giant, is looking towards less glamorous choices in hopes that they might eventually counterbalance the losses from its most prominent revenue driver.

Among its latest customers is an expansive fish farm situated in eastern China that is two times New York’s Central Park in size. As per reports, the farm’s water bodies are covered with thousands of solar PV panels that are equipped with inverters from Huawei to generate electricity while protecting its fish from extreme sunlight.

The Chinese corporation, once the globe’s biggest smartphone maker, has seen several U.S. sanctions almost destroy its profitable consumer electronics business. Now, with the new Biden administration maintaining pressure created on Huawei by the Trump administration, Ren Zhengfei, the company’s billionaire founder, has routed the firm to expand its portfolio of enterprise customers in agriculture, manufacturing, transportation, as well as other industries.

For the uninitiated, Huawei is the globe’s leading provider of inverters and it is currently looking to grow those sales along with cloud services as well as data analytics based solutions to make the 190,000-employee strong business survive.

Ren stated that novel initiatives might offset the decline in its handset business within 2021 itself, although the firm declined to provide exact figures.

As per a spokesperson, the US ban has had very limited impact on the emerging businesses of Huawei, since most of the parts needed are available from suppliers across China. To meet the rising demand from contractors such as Huawei, a number of local suppliers are pushing for much better performance from more mature technologies that have not been prohibited by Washington.

Huawei is planning to launch more of its photovoltaic inverters to the market. Especially, given that Beijing’s goal to have carbon emissions in the globe’s second-biggest economy reach its peak by 2030, is encouraging investments in renewable energy.

Another initiative named 5GtoB involves Huawei deploying 5G technology to areas ranging from airplane manufacturing to health care.

Ken Hu, rotating chairman, Huawei, stated that the company has signed as many as 1,000 5GtoB deals in around 20 sectors with the assistance from telecom carriers.

Source credit: https://www.aljazeera.com/economy/2021/3/15/bbafter-us-sanctions-huawei-turns-to-new-businesses-to-boost-rev

Nandita Bhardwaj

Having a marketing management post graduate degree under her belt, Nandita spent considerable time working in the field of recruitment. However, her real interest lay in playing with words and soon enough, she commenced her career in the field of content creation. Currently, she authors insightfu Read more...