Shenzhen-based tech giant Huawei Technologies experienced its fastest growth in four years in 2023, demonstrating resilience in the face of US sanctions. The company’s recovery was fueled by its consumer segment and income from new ventures such as smart car components.
Huawei reported a 9.6% increase in revenue to 704.2 billion yuan ($97.5 billion) compared to the previous year. The consumer business played a significant role in this growth, contributing 17.3% to the overall revenue with 251.5 billion yuan.
While Huawei did not provide a breakdown, the consumer segment encompasses the company’s handset business, which experienced a resurgence in the mainstream 5G smartphone market with the Mate 60. This success is notable considering the US restrictions imposed on Huawei since 2019 due to security concerns, which the company vehemently denies.
Despite facing challenges, Huawei has now achieved three consecutive years of growth following a sharp decline in revenue in 2021 due to chip shortages. However, revenue has yet to reach its peak of 891.3 billion yuan in 2020.
Huawei’s chairman, Ken Hu, expressed satisfaction with the results, acknowledging the difficulties the company has faced but highlighting its ability to overcome obstacles and continue growing. However, unlike previous years, Huawei chose not to hold a launch event to celebrate its accomplishments.
The company’s net profit in 2023 saw a remarkable increase of 144.5% to 87 billion yuan, accompanied by a net profit margin that more than doubled from the previous year to 12.35%. Huawei attributed some of this profit to ongoing payments from the sale of its Honor smartphone brand in November 2020.
While Huawei’s core ICT infrastructure business remained stable, its cloud business experienced significant growth of over 20%, generating revenue of 55.3 billion yuan. Additionally, the company’s smart car software and components business, established four years ago, reported substantial year-on-year growth of 128% to 4.7 billion yuan. Huawei has recently announced plans to spin off this unit into a separate company to further capitalize on its success.
Huawei’s ability to find new revenue sources and diversify its offerings has been crucial in overcoming the challenges posed by US sanctions. With its continued growth and adaptation to new market trends, the company remains a prominent player in the global tech industry.
Shenzhen-based tech giant Huawei Technologies has experienced impressive growth in 2023, bouncing back from the negative impacts of US sanctions. The company’s revenue increased by 9.6% to reach 704.2 billion yuan ($97.5 billion), marking its fastest growth in four years. This resilience can be attributed to the success of its consumer segment, as well as income from new ventures, particularly in the smart car components industry.
The consumer business played a significant role in Huawei’s growth, contributing 17.3% to the overall revenue with 251.5 billion yuan. Although Huawei did not provide a detailed breakdown, this segment includes the company’s handset business, which has seen a resurgence in the mainstream 5G smartphone market with the flagship Mate 60. This achievement is particularly notable considering the restrictions imposed on Huawei by the US since 2019.
After experiencing a sharp decline in revenue in 2021 due to chip shortages, Huawei managed to achieve three consecutive years of growth. However, it has yet to reach its peak revenue of 891.3 billion yuan in 2020.
Huawei’s chairman, Ken Hu, expressed satisfaction with the company’s performance, acknowledging the challenges it has faced but emphasizing its ability to overcome obstacles and continue growing. However, unlike previous years, Huawei decided not to hold a launch event to celebrate its accomplishments.
In terms of net profit, Huawei experienced a remarkable increase of 144.5% to 87 billion yuan in 2023. The net profit margin also more than doubled from the previous year, reaching 12.35%. Huawei attributed a portion of this profit to ongoing payments from the sale of its Honor smartphone brand in November 2020.
While Huawei’s core ICT infrastructure business remained stable, its cloud business experienced significant growth of over 20%, generating revenue of 55.3 billion yuan. Furthermore, the company’s smart car software and components business, established four years ago, reported substantial year-on-year growth of 128% to 4.7 billion yuan. Recognizing the success of this unit, Huawei has announced plans to spin it off into a separate company to further capitalize on its potential.
Huawei’s ability to find new revenue sources and diversify its offerings has been crucial in overcoming the challenges posed by US sanctions. The company’s continued growth and adaptation to new market trends highlight its resilience and position as a prominent player in the global tech industry.
For more information about Huawei’s performance and innovations, you can visit their official website at Huawei.com.