Huawei announced that its revenues in 2023 approached $100 billion, despite ongoing US sanctions on the Chinese phone manufacturer. Sales increased to over 700 billion yuan ($98.7 billion), marking a 9% growth compared to the reported 642 billion yuan ($92.4 billion) in 2022. The solid telecommunications infrastructure and better than expected results in the devices division, including smartphones, contributed to this achievement.
It is worth noting that Huawei has succeeded despite long-standing US sanctions aimed at limiting access to American technology, especially cutting-edge integrated circuits. In August, the Chinese manufacturer released its first 5G smartphone, which was a breakthrough in producing its own integrated circuits in Beijing, which had previously relied on US components.
Huawei’s latest results also demonstrate a great year for the devices business, exceeding expectations in 2023. The company plans to further focus on this segment in 2024. Notably, the debut of the Mate 60 Pro in August, powered by a Chinese integrated circuit that was supposed to be blocked by the US sanctions, surprised industry experts who were amazed at how Huawei could create a modern 5G-capable device without key American components. It was a sign that Huawei and Chinese technology had reached a new level of independence.
Thanks to the Mate 60 Pro, Huawei regained its position as the leading Chinese mobile phone brand and reclaimed market share previously held by Apple. According to Counterpoint Research, Huawei increased its market share in 2023, rising from 10% in the first quarter to 14% in the third quarter. During the same period, Apple’s market share in China dropped from 20% to 15%.
Despite the positive results, Ken Hu, one of Huawei’s rotating chairmen, continues to emphasize the serious challenges the company faces. Geopolitical conflicts, economic uncertainties, and technological restrictions all affect the industry. In December 2023, US Secretary of Commerce Gina Raimondo stated that Washington would take “the strongest possible” actions to protect national security in response to the breakthrough in integrated circuit production in China.
Huawei’s story is an example of the company’s struggle on the international stage. Despite US sanctions, Huawei has maintained its presence in the market, ensuring profits and the development of its devices. Years of experience, innovation, and a determination for independence have allowed the Chinese manufacturer to remain a leader.
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The source of the article is from the blog scimag.news