Chinese telecommunications company Huawei reported a significant increase in net profit for 2023, citing improved product offerings and a 9.6% year-on-year revenue growth to 704.2 billion yuan ($99.18 billion). The company’s net profit more than doubled, reaching 87 billion yuan, with higher quality operations and sales of some businesses contributing to profitability. Huawei made a comeback in the smartphone market in 2023 with the release of its Mate 60 Pro in China, featuring advanced semiconductor technology that allowed for 5G download speeds, despite U.S. restrictions on accessing high-end tech from American suppliers.
The Mate 60 Pro’s positive reception in China led to a 47% surge in Huawei smartphone shipments in the country in the fourth quarter of 2023, placing the company in fourth place by market share ahead of Xiaomi. Apple maintained its position at the top with 6% year-on-year growth in shipments. In 2022, Huawei saw a 0.9% revenue growth to 642.3 billion yuan after facing a challenging year in 2021 with a sales decline of more than 28%. However, the company’s net profit fell by 69% in 2022, the largest drop on record, due to factors such as rising commodity prices, pandemic controls in China, and increased research and development spend.
Huawei also reported growth in its intelligent automobile solutions business, with revenue increasing by 128.1% to 4.7 billion yuan compared to the previous year. The company sells software and technology to car companies and has partnered with an automaker for the Aito electric car brand. Huawei’s consumer business revenue grew by 17.3% year-on-year to 251.5 billion yuan in 2023, and its ICT division remained the largest revenue driver with 362 billion yuan in revenue, up 2.3% from the previous year. Cloud revenue also saw significant growth of nearly 22%, reaching 55.3 billion yuan in 2023.
Throughout the year, Huawei continued to face challenges stemming from U.S. restrictions on accessing high-end technology from American suppliers. Despite these obstacles, the company’s strategic product offerings and focus on quality operations led to a strong financial performance in 2023. The Mate 60 Pro’s successful release in China boosted Huawei’s smartphone sales in the country, contributing to its market share growth. Overall, Huawei’s revenue growth and increase in net profit demonstrate its resilience and ability to adapt to changing market conditions and regulatory challenges in the telecommunications and technology sectors.
