Huawei Technologies NZ has reported a sharp decline in revenue, as mobile network customers shift to other providers for 5G and other work.
Huawei Technologies NZ reported revenues of $111.3 million for the year ended 31 December 2020, down from $198.8 million in 2019.
The latest full-year accounts come as key local client 2degrees announced it was moving its 5G and much of its 4G contracts to Swedish giant Ericsson.
Huawei's relationship with 2degrees was once so close it helped debt fund the challenger's market entry into New Zealand over a decade ago.
Other Huawei customers have made similar adjustments to 2degrees in their mobile network procurement strategies, with Spark opting for Nokia and Samsung, and Vodafone for Nokia.
“2020 was undoubtedly a tough year," Andrew Bowater, Huawei NZ's deputy managing director, told Reseller News.
"While disappointing, it’s not surprising that Huawei New Zealand’s revenue was down and that we made a loss in 2020 as a direct result of the global pandemic and the geopolitical interference we have been exposed to."
A Chinese company, Huawei has been beset by security suspicions, particularly among members of the Five Eyes security alliance, the US, Canada, the UK, Australia and New Zealand.
"Despite the challenges we’ve faced, we remain committed to the New Zealand market and optimistic for our future here," Bowater said.
Huawei was no longer pushing 5G in New Zealand, he said, but would continue to serve other areas of strength in the telecommunications carrier sector and had diversified its offering to align with New Zealand’s climate change and business goals, he said.
The new offering includes enterprise meeting, storage and network management systems, as well as a range of digital power solutions designed to provide better power efficiency for data centres, carrier sites and Huawei's solar power lineup.
"To complement that, we’re continuing to bring in the latest consumer devices into the market, including an expanded laptop, audio and wearable range," Bowater said.
According to the financial statements, Huawei fell into the red by $713,424, down from a net profit of $4.9 million in 2019
Staff expenses were also well down year on year, from $19 million to $14.9 million, indicating some attrition.