The context: At its Shenzhen headquarters, Huawei is planning a 4 billion yuan ($630 million) investment to establish a R&D lab and central office for sustainable digital infrastructure projects. These will reduce energy consumption by improving online monitoring capabilities and the efficiency of telecom carriers.
- Last October, Huawei inked a deal with Saudi Arabia for the world’s largest energy storage project, part of the Saudi government’s plans for a zero-emissions city on the Red Sea coast.
- In addition, the company has pursued other areas of product development. Huawei has ventured into e-readers, similar to Amazon’s Kindle, Smart Office devices such as top-end laptops and printers, as well as electric vehicles.
- Estimates suggest 2021 revenue reports will drop by approximately 30%, totaling 634 billion yuan ($99 billion) year-on-year.
The takeaway: Huawei has fallen from its commanding position as smaller smartphone rivals OPPO, Vivo, and Realme debuted at the Mobile World Congress this week. The company’s smartphone arm has shrunk immensely due to U.S. sanctions that cut off its supply of chips and critical software. But it is still early days for Huawei’s green energy pivot and given the size of its projects, it may be years before Huawei’s investments yield a return.