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Appix

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Huawei says 2022 'most challenging' time for device business

Huawei Technologies on Friday said its device business, which includes smartphones and other consumer electronics, is facing its "most challenging" time ever this year as the company continues to wrestle with a U.S. clampdown and economic uncertainties.

The Chinese tech company's revenue for the first half of 2022 dropped 5.9% on the year to 301.6 billion yuan ($44.8 billion), while its net profit margin declined to 5% from 9.8% a year ago, Huawei said in a brief press statement on Friday.

"2022 will probably be the most challenging year historically for our devices business," the company said, explaining that the segment was hit hard by COVID-19 and the global economic downturn. "As our smartphone business has been heavily impacted, in the device business, we have decided to focus on developing innovative products in five major user scenarios: smart office, fitness and health, smart home, easy travel, and entertainment."

Huawei, once the world's largest smartphone maker, has been cut off from supplies of cutting-edge chips since the U.S. added it to a trade blacklist. It also lost the ability to work with industry-leading chipmakers such as Taiwan Semiconductor Manufacturing Co. and Samsung Electronics due to the U.S. ban.

The Chinese company has been attempting to build its own chipmaking abilities, but acknowledged in a comment to Nikkei Asia that the road ahead will be a long one.

"Previously, the semiconductor industry was a globalized industry and each player played a key role in making chips possible. It did not make sense and there was no commercial value in repeating other people's investments," a company spokesperson said. "However, now that the market has become segmented and access to certain technologies are blocked, certain investments have now become logical."

The company will continue innovating alongside its partners to advance "the common goal of development for China's semiconductor industry," the person said.
Huawei did not specify which areas it is focusing on for investment, but has previously poured money into all kinds of chip-related technologies including materials, precision tools and chip design software, Nikkei Asia reported earlier.

The declining net profit margin in the first half of this year was due to the shrinking scale of its business and continued aggressive investment in new businesses, software technologies and efforts to ensure business continuity, the spokesperson said. Huawei is also continuing to increase its research and development spending.

Sales from its carrier business, which contributed 47% of Huawei's total revenues, and its devices business group, which includes smartphones, all shrank from the same time a year ago. Enterprise business sales grew 27.5% on the year.

Overall, Huawei's 5G-related telecom equipment business has shown steady growth both in the Chinese market or in overseas markets, according to the company. It has accumulated more than 5,000 commercial 5G contracts in its home market, Hungary, Thailand, South Africa, Saudi Arabia and the United Arab Emirates, to help companies build 5G infrastructure. Huawei 5G technologies have been used in ports, mines, manufacturing, oil and gas industries, it said.

The company's cloud computing service business has maintained good growth, mainly from the massive domestic market.

Around 80% of China's top 50 internet companies are Huawei's cloud service clients, and it has 220 financial clients, 30 automobile clients, and more than 40 industrial internet customers. More than 23,000 manufacturers use the services, it said.

Huawei is also expanding its foray into the automotive business, though it has yet to turn a profit in this segment. The company will focus on providing key components and automotive software, and its consumer electronics team will help clients design the exteriors and interiors of automobiles, it said.

Huawei is expected to invest $1.5 billion in research and development on automotive-related technologies, 50% more than last year. It has devoted some 7,000 members of its R&D workforce to building car technologies, including electronics infrastructure, smart cockpits and smart driving assistance tech.

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ansy1968

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Huawei says 2022 'most challenging' time for device business

Huawei Technologies on Friday said its device business, which includes smartphones and other consumer electronics, is facing its "most challenging" time ever this year as the company continues to wrestle with a U.S. clampdown and economic uncertainties.

The Chinese tech company's revenue for the first half of 2022 dropped 5.9% on the year to 301.6 billion yuan ($44.8 billion), while its net profit margin declined to 5% from 9.8% a year ago, Huawei said in a brief press statement on Friday.

"2022 will probably be the most challenging year historically for our devices business," the company said, explaining that the segment was hit hard by COVID-19 and the global economic downturn. "As our smartphone business has been heavily impacted, in the device business, we have decided to focus on developing innovative products in five major user scenarios: smart office, fitness and health, smart home, easy travel, and entertainment."

Huawei, once the world's largest smartphone maker, has been cut off from supplies of cutting-edge chips since the U.S. added it to a trade blacklist. It also lost the ability to work with industry-leading chipmakers such as Taiwan Semiconductor Manufacturing Co. and Samsung Electronics due to the U.S. ban.

The Chinese company has been attempting to build its own chipmaking abilities, but acknowledged in a comment to Nikkei Asia that the road ahead will be a long one.

"Previously, the semiconductor industry was a globalized industry and each player played a key role in making chips possible. It did not make sense and there was no commercial value in repeating other people's investments," a company spokesperson said. "However, now that the market has become segmented and access to certain technologies are blocked, certain investments have now become logical."

The company will continue innovating alongside its partners to advance "the common goal of development for China's semiconductor industry," the person said.
Huawei did not specify which areas it is focusing on for investment, but has previously poured money into all kinds of chip-related technologies including materials, precision tools and chip design software, Nikkei Asia reported earlier.

The declining net profit margin in the first half of this year was due to the shrinking scale of its business and continued aggressive investment in new businesses, software technologies and efforts to ensure business continuity, the spokesperson said. Huawei is also continuing to increase its research and development spending.

Sales from its carrier business, which contributed 47% of Huawei's total revenues, and its devices business group, which includes smartphones, all shrank from the same time a year ago. Enterprise business sales grew 27.5% on the year.

Overall, Huawei's 5G-related telecom equipment business has shown steady growth both in the Chinese market or in overseas markets, according to the company. It has accumulated more than 5,000 commercial 5G contracts in its home market, Hungary, Thailand, South Africa, Saudi Arabia and the United Arab Emirates, to help companies build 5G infrastructure. Huawei 5G technologies have been used in ports, mines, manufacturing, oil and gas industries, it said.

The company's cloud computing service business has maintained good growth, mainly from the massive domestic market.

Around 80% of China's top 50 internet companies are Huawei's cloud service clients, and it has 220 financial clients, 30 automobile clients, and more than 40 industrial internet customers. More than 23,000 manufacturers use the services, it said.

Huawei is also expanding its foray into the automotive business, though it has yet to turn a profit in this segment. The company will focus on providing key components and automotive software, and its consumer electronics team will help clients design the exteriors and interiors of automobiles, it said.

Huawei is expected to invest $1.5 billion in research and development on automotive-related technologies, 50% more than last year. It has devoted some 7,000 members of its R&D workforce to building car technologies, including electronics infrastructure, smart cockpits and smart driving assistance tech.

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Its okay everybody is suffering at least coming from a low base due to sanction It ain't hurting much unlike most US company....lol , Do everybody agree this sanction force Huawei to restructure and that's a good thing making them learner and more flexible. I think this is an opportunity to strike back as most of its competitor are reeling from the down turn. ;)
 

solarz

Brigadier
The chickens are simply coming home to roost for these countries. It's cringy listening to these clowns utter "before we proceed our meeting we acknowledge that the lands we are standing on are stolen or some hollow shit like that which comes across as shallow and as insincere as ever. It's not like those folks are going to ever get their lands back. If they were truly sorry, then give it back. The virtue signaling nonsense is going to bite their political assess back because sooner or later someone from within the colonial tribe is going to be the one pushing for more to make up for the sins of their gender less genocidal ancestors.

Seriously, I had to listen to that crap every day when my kids were doing virtual school. The kind of whitewashing they do to the genocide of native people is disgusting.
 

Helius

Senior Member
Registered Member
SK: *checks dictionary* Cor...ruption... I sorry, I cannot find this word that you say.

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Samsung boss Lee Jae-yong, convicted of bribery, gets South Korean presidential pardon
  • The justice ministry said the billionaire will be ‘reinstated’ to give him a chance to ‘contribute to overcoming the economic crisis’ of the country
  • The government also pardoned three other businessmen, including Lotte Group chairman Shin Dong-bin

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Samsung heir Lee Jae-yong. Photo: AP

The heir and de facto leader of Samsung group received a presidential pardon on Friday, the latest example of South Korea’s long tradition of freeing business leaders convicted of corruption on economic grounds.

Billionaire Lee Jae-yong, who was convicted of bribery and embezzlement in January last year, will be “reinstated” to give him a chance to “contribute to overcoming the economic crisis” of the country, Justice Minister Han Dong-hoon said.

Lee – the 278th-richest person in the world, according to Forbes, with a net worth of US$7.9 billion – was released on parole in August 2021, after serving 18 months in jail, just over half of his original sentence.

Friday’s pardon will allow him to fully return to work by lifting a post-prison employment restriction that had been set for five years.

“Due to the global economic crisis, the dynamism and vitality of the national economy have deteriorated, and the economic slump is feared to be prolonged,” the Justice Ministry said in a statement.

The pardon was given so that Lee – and other similarly pardoned high-level executives – could “lead the country’s continuous growth engine through active investment in technology and job creation,” the ministry added.

Lee, 54, vowed to work hard for the national economy after receiving his pardon.

“I will contribute to the economy with continuous investment and job creation and give back the people and government’s regards,” Samsung said in a statement, citing Lee.

Three other businessmen were also pardoned on Friday, including Lotte Group chairman Shin Dong-bin, who was sentenced to a suspended two-and-half-year prison term in a bribery case in 2018.

“We sincerely thank the government’s and people’s decision to grant pardon, and chairman Shin Dong-bin and staff members at Lotte will contribute to overcoming the complex global crisis,” Lotte said in a statement.

401a8a25-6226-47c0-9aa8-8e12130a3f01_4470add1.jpg
Lotte Group chairman Shin Dong-bin. Photo: Getty Images

Lee is the vice-chairman of Samsung Electronics, the world’s biggest smartphone maker. The conglomerate’s overall turnover is equivalent to about one-fifth of South Korea’s gross domestic product.

He was jailed for offences connected to a massive corruption scandal that brought down former president Park Geun-hye.

The reinstatement will allow Lee to rejoin the board at the tech giant as well as travel overseas for deals.

“Samsung’s in a crisis as it has lost its two strengths: technology leadership and strict management,” said Park Ju-gun, head of corporate research at Leaders Index. “There’s an absence of a control tower making the right decisions at the right time to keep its leadership in the semiconductor industry.”

Lee is widely expected to expedite major strategic decisions ranging from chipmaking deals to governance reforms.

Samsung warned during its earnings call last month that the Ukraine war, inflation and waning consumer demand made it immensely challenging to forecast the year ahead.

One of the key outstanding questions around Lee is whether he’ll seek to take over as chairman of the tech giant. Ever since Lee’s father, Lee Kun-hee, passed away in October 2020, the post to oversee the US$280 billion company has remained vacant.

Still, Lee’s legal woes will not be cleared for the next few years as he’s being separately prosecuted in relation to a merger of some Samsung subsidiaries and will be attending weekly hearings related to that case.
 
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