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Huawei’s Revenue Loss Slows Amid Cloud Push

Shenzhen, Aug 12 (IANS): Chinese conglomerate Huawei posted a nearly 6% loss in revenue for the first six months of the year on Friday and its devices business, which includes smartphones, fell 25.4% due to US sanctions. on chip technology.

Huawei generated 301.6 billion yuan ($44.7 billion) in revenue, with a net profit margin of 5%, which was “in line with expectations” and the pace of revenue loss slowed as the company was doubling its cloud business.

“While our device business was heavily impacted, our information and communications technology (ICT) infrastructure business maintained steady growth,” said Ken Hu, rotating chairman of Huawei.

“Going forward, we will leverage digitalization and decarbonization trends to continue to create value for our customers and partners, and ensure quality development,” he said in a statement.

The network equipment business, which sells to telecommunications network operators, rose 4.24% to 142.7 billion yuan (about $21 billion).

The cloud business achieved “healthy” sales in the first half of 2022, said William Dong, president of Huawei Cloud Marketing.

“Profitability is not a priority for us. We will continue to increase our investments in artificial intelligence and other technologies that can help our customers improve their efficiency,” Dong said.

In a bid to tackle tech giant Google’s Android operating system amid ongoing US sanctions, Huawei late last month unveiled an upgraded version of its own operating system, HarmonyOS 3. .

The third-generation operating system is designed to deliver a more seamless experience across all devices, including smartphones, tablets, printers, cars, and smart home devices like TVs.

The company said HarmonyOS 3 will be available for more devices starting in September.

Huawei launched the original HarmonyOS in August 2019, three months after the company was added to the US trade blacklist, preventing it from buying software, chips and other technology from US companies.

Shortly after the ban was announced, Google stopped providing its suite of mobile software services to Huawei.