Huawei profits dropped by 69% last year, with the company enumerating the reasons behind the decline

Per CNBC

Huawei reportedly experienced a massive drop in profits by 69% in 2022. The company has enumerated the many reasons they reportedly experienced a profit drop.

Huawei blamed the following.

Rising commodity prices
Strict pandemic controls in China
One-off gain related to Honor's sale
U.S. sanctions

The company saw its profits drop by a total of $5.18 billion year-on-year, which was larger than 2011's 54% annual decline. Huawei rotating chairman Eric Xu gave a statement in a press release regarding the situation.

Xu: “In 2022, a challenging external environment and non-market factors continued to take a toll on Huawei’s operations,” Eric Xu, rotating chairman at Huawei, said in a press release.

The company has long been trying to diversify its business amid U.S. sanctions which were reportedly hampering the company. Some fields that the company plans to venture into include cloud computing and automotive.

Xu: “In the midst of this storm, we kept racing ahead, doing everything in our power to maintain business continuity and serve our customers,”

Huawei's plans to venture into automotive could benefit the company as China reportedly sold 5x more EVs than the US in 2022. This was despite car sales in China plunging that year by 13%.

It was reported that throughout the year, the country could sell 5.67 million EV and plug-in hybrid vehicles. Regarding pure EVs, China was able to sell 4 million units throughout the year, making it the largest EV market.

In other news, China's population started shrinking in 2022 for the first time ever since 1960. In 2021, China reported 10.62 million babies being born, but last year, there were only 6.56 million babies.

In total, China had 1.41 billion people by the end of 2022. This was an 850,000 decline compared to the end of 2021.

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CNBC