Last year, the company had posted a revenue of $1.2 billion out of which around $250 million was accounted for devices business.
Moneycontrol News
Owing to a huge drop in demand for its equipment and services due to rapid consolidation in the Indian telecom market, Huawei India had shut assembly of products at its Chennai plant. As India gets digitally advanced with more and more global corporations entering the economy, even big firms like Huawei, who were once leading telecom manufacturers, have started witnessing a significant drop in revenue. The Chinese company saw a major revenue decline of almost 40 percent ($700-800 million) in 2018.
It has now resorted to imports to meet demand of telecom products in the market, a report by Economic Times stated. The number of telecom service providers has jumped from 8-9 a year ago to just a few: Bharti Airtel, Reliance Jio Infocomm, Vodafone-Idea Cellular and state-run Bharat Sanchar Nigam and Mahanagar Telephone Nigam.
The company's revenue is likely to be hit by Rs 4,740-5,415 crore this year. Huawei follows calendar year for accounting in India. Last year, it had posted a revenue of $1.2 billion, of which around $250 million was accounted for by the devices business. When contacted, Huawei refused to comment on this.
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Huawei provides 4G LTE telecom gear to Airtel, Vodafone and Idea Cellular in a few circles. After the Idea Cellular-Vodafone India merger is complete, it might be able to retain its sale in a few circles. It has been working with contract manufacturer Flex for manufacturing of handsets and telecom equipment in India. Previously, it used to provide services to Telenor and Vodafone.
However, the company's managed services business has been hurt badly due to several mergers. It is also finding it difficult to acquire new clients, hitting its future plans. Huawei has been laying off its operational staff in a phased manner. The only saving grace is its smartphone business which has shown signs of growth in recent times.