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Huawei’s server market revenue will drop by 45.9% in Q2 2021: IDC
IDC, the industry data tracker, recently published the Quarterly Tracking Report on Global Servers, showing that the global server market for the second quarter of 2021 decline by 2.5% Year on Year (YOY) to $23.6 billion.
According to the data published by the company, the global server shipment exceeds 3.2 million units in Q2, increasing 0.1% year on year in growth. Batch server revenue increased by 5.6% to nearly 20 billion US dollars and mid-range server revenue plummeted 30.0% to 2.4 billion US dollars. High-end server revenue dropped 32.7% to 1.3 billion US dollars.
Coming to Huawei, its Q2 revenue in 2021 was 3.785 billion yuan compared to 6.998 billion yuan in Q2 2020 with a year-on-year decrease of 45.9 percent (3.213 billion yuan).
Aside from Huawei, the HP3/H3C tops the list along with DELL technologies. the revenue graphs of this two firmware were 15.7 percent and 15.6 percent. These are followed by Inspur Business on third, Lenovo and IBM ranked 4th and 5th respectively.
This report also points out a geographical perspective, the Asia-pacific region (excluding China and Japan) revenue increased by 8.6% year-on-year.
China’s server revenue increased by 3.4% year on year, while Japan’s seen a decrease by 21.2% year on year. Revenue in Latin America increased by 4.6% year on year, revenue in North America fell by 5.7% year on year, and revenue in Europe, Middle East, and Africa (EMEA) fell by 2.3% year on year.
Revenue from x86 servers increased by 2.2% in the second quarter of 2021, reaching $21.4 billion. Revenue from non-x86 servers fell 4.5% year-on-year to approximately US$2.3 billion.
During the 2022 Annual Business Report, Huawei CFO and Next Rotating Chairwoman, Meng Wanzhou said that Huawei will continue to operate in the hardest difficulties and the company will never give up.
Mrs. Meng will take over Huawei as the rotating chairwoman on April 1st, as it will be her first tenure as Huawei’s top leader. Meng Wanzhou said as long as Huawei continues to struggle, every minute of our time and every effort will not be wasted, we will never give up.
“We may not be able to succeed but we live to death, how can we not be benevolent?” she added.
These are pretty strong words from the Huawei leader as she remains optimistic for a bright future.
Results:
Huawei says its operation is now stable and the company has achieved global sales revenue of 642.3 billion yuan, while a net profit of 35.6 billion yuan. From this Huawei’s carrier business, enterprise business, and device business gained sales revenue of 284 billion yuan, 133.2 billion yuan, and 214.5 billion yuan respectively.
In 2022, R&D invested 161.5 billion yuan, accounting for 25.1% of the company’s entire 2022 revenue. On the flip side, the cumulative R&D expenses invested in ten years will exceed 977.3 billion yuan.
During the press note, Xu Zhijun, Huawei’s current rotating chairman, said that 2023 is a critical year for Huawei’s survival and development.
Xu Zhijun said that the upcoming year and the following are critical for Huawei. The key direction of Huawei’s strategy is to create growth opportunities, enhance development resilience, build differentiated advantages, win by quality, and ensure high-quality business continuity and product competitiveness.
He also mentioned that Huawei should seize the opportunities of digitalization in all walks of life to achieve effective growth. Huawei will also get advantages of its industrial portfolio and strong resilience, and strive to build a foundation for the digital economy and promote green and sustainable development.
In the face of challenges, Huawei is working with its partner to overcome difficulties.
Today, Huawei released its 2022 annual report, which shows that Huawei’s overall operations are stable. It shows global sales revenue of 642.3 billion yuan and a net profit of 35.6 billion yuan. In 2022, the R&D investment reached 161.5 billion RMB, accounting for 25.1% of the annual revenue. The accumulated R&D expenditure in ten years will exceed 977.3 billion RMB.
“Looking back on 2022, the severe external environment and non-market factors continue to affect the company’s operations. In the midst of the storm, we continue to run and strive to ensure business continuity and ensure support and services for customers. We also worked hard to harvest more food so that I could not only survive but also lay a foundation for future development.” said Rotating chairman Xu Zhijun said
Chief Financial Officer Meng Wanzhou said: “In 2022, operations still face greater pressure. Overall, operating performance is in line with expectations. At the end of 2022, Huawei’s asset-liability ratio was 58.9%, and its net cash balance was 176.3 billion yuan, nearly one trillion yuan. In the scale of total assets, high-liquidity assets such as cash, short-term investment, and operating assets constitute the main part of the assets. The financial situation continues to be stable and has strong resilience and flexibility. In 2022, the total R&D expenses accounted 161.5 billion yuan, and R&D The expense ratio is 25.1%, which is at a historically high level. Facing the future, we are under pressure and more confident!”
In 2022, Huawei achieved sales revenue of 284 billion yuan in the operator business field. 133.2 billion yuan in sales revenue from Huawei’s enterprise business and 214.5 billion yuan in sales revenue from the smart devices business.
Xu Zhijun emphasized: “2023 is a critical year for Huawei’s survival and development. Today’s Huawei is like a plum blossom. Opportunities, industrial portfolio resilience, differentiated advantages, the trust of customers and partners, and the courage to invest aggressively. Therefore, we are confident to overcome difficulties and achieve sustainable survival and development.”
Recent research shows that the network switches from Huawei once again won first place in the Chinese enterprise network switch market for the year 2022. Interstingly, Huawei won this title for the 7th year in a row, which is an amazing achievement for the Chinese tech maker.
The latest statics are coming from the market tracker IDC, which published a report with the title “China Network Switch Market Quarterly Tracking Report (2022Q4)”.
In terms of campus networks, Huawei released the CloudEngine S16700 series of switches with the highest performance in the industry. It is four times more powerful than other players in the same field.
Huawei also released the CloudEngine S8700 series, the highest-density switch in the industry. It establishes the super access capability of one machine for connecting 6,000 terminals, and one for two.
The innovative architecture and components increase the signal transmission efficiency by 30% while reducing the heat dissipation power consumption by 30%.
Based on the central switch, the remote modules are managed in a unified manner, so that customers do not need to manage and configure access devices.
It completes network expansion in one second, reducing 80% of management nodes and 77% of engineering wiring. Also reducing the cost of comprehensive network construction by more than 30%.
In terms of data center networks, Huawei CloudEngine data center switches are deployed and served in data centers of more than 100 countries and 21,000+ customers around the world through high-performance programmable devices, self-developed operating systems, and network convergence capabilities.
To be mentioned, the core data center switch CloudEngine 16800 series has reached the world’s top level with a total capacity of more than 300Tbps, ranking first in the world. By providing the best technology, Huawei is still maintaining a lead in the market of network switches.