Huawei, a Chinese telecom gear company, has reported that its profits for 2021 have touched a record high despite being out of fresh contracts from countries such as the United States (US), India, and more. Be it European nations, India or the US; the company is not welcomed for fresh 4G expansion contracts for 5 G gear.
It all started with the US and China trade and technology standoff. Donald Trump, former president of the US, had crippled Huawei over cybersecurity and espionage concerns. However, despite all the bad publicity and lost business, Huawei has registered record net profits for 2021
Huawei Net Profits Reach $17.8 Billion
According to an AFP report, Huawei’s net profits reached 113.7 billion yuan ($17.8 billion) last year, marking a 76% YoY rise. However, the overall revenues of the company reduced 29% YoY because it couldn’t bag fresh contracts
One of the biggest hits for Huawei was when it was barred by Google to use its Android services for smartphones. This made users switch from Huawei devices to other company smartphones
In the consumer business, Huawei’s revenues slumped by 50% YoY to 243 billion yuan. The company is still positive about the future and has shifted its focus back to the Chinese market. Huawei is still a big telecom gear vendor and many countries still allow the company to be a part of its future networks
In India, the government hasn’t banned Huawei, but hasn’t included the company on its trusted list either. Huawei’s consumer business has been badly hit, but the company is still focusing on building a customer base in countries such as India
In India, the company’s consumer business is focusing on improving the R&D culture locally. It is worth noting that out of China, Huawei’s largest R&D center is in India. But things don’t look good for the company, given that it is losing business and contracts day by day
Samsung had earlier said that it doesn’t want to come to India and invest huge sum of money just for one client when it can easily fulfil the global demand for telecom gear via its manufacturing facilities in South Korea, China, and Vietnam. Samsung can benefit greatly from the PL I scheme for the telecom sector, while India will see more employment opportunities and a boost in its economy
Samsung has conveyed to the Indian government that it is interested in participating in the second phase of the Production Linked Incentive (PL I) scheme for the telecom sector. The South-Korean tech giant wants to set up telecom equipment manufacturing facilities in India. It is worth noting that Samsung had earlier avoided participating in the telecom PL I scheme because it didn’t want to invest a large amount of money just to serve one client – Reliance Jio
Note that Samsung has already been working with Jio in its 5G trials. Jio had taken Samsung’s help earlier for rolling out 4G across the nation. Thus, there might be a possibility that Jio might award Samsung a contract for supplying 5G gear too
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