Wuhan chipmaker attributes drop in sales to Covid, ‘mad suppression’ by US

Chinese company Wuhan P&S Information Technology Co Ltd on Tuesday accused Covid-19 and the “mad suppression” of the Chinese tech sector by the US government of a sharp drop in sales last year.

The remarks are an unusually open admission of the stress the Chinese electrical components industry has suffered over the past year after the US government banned companies relying on US-sourced technology from selling to Huawei Technologies Co Ltd.

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Revenue from the company’s CMOS sensor parts division, which sells to Sony Corp and then to Huawei and other brands, increased from 8 billion yuan ($ 1.2 billion) in 2019 to 5 billion yuan. yuan in 2020, the company said from a perspective ahead of its full results. declaration.

“Due to the influence of the epidemic and the launch by the US government of a new mad crackdown on the Chinese high-tech sector, the company’s most important market, the market structure of smartphones have undergone big changes, ”the company said.

This has resulted in a sharp drop in its sales in the smartphone industry, he said.

“As the epidemic spread across the United States and the Trump administration continued to increase its pressure on Huawei to the point of complete blockage, our indirect sales to Huawei also gradually declined,” he added.

Sales of its components related to IoT devices – which connect through an Internet connection – have also suffered, the company added, as the outbreak caused an economic downturn.

The measures announced by the United States prompted Huawei to sell its Honor brand of mid-range phones last year.

Reuters reported this week that Huawei was in talks to sell two of its high-end phone lines to a branch of the Shanghai government. A Huawei spokesperson denied the report.

($ 1 = 6.4710 yuan Chinese renminbi)

This story was posted from an agency feed with no text editing. Only the title has been changed.

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