Chinese telecommunications giant, Huawei, reported a significant increase in net profit for the year 2023, more than doubling compared to the previous year. This remarkable growth was attributed to a variety of factors, including better product offerings which resonated well with consumers. The company also saw a 9.6% year-on-year increase in revenue, reaching 704.2 billion yuan ($99.18 billion). Net profit surged by an impressive 114.5% year-on-year, amounting to 87 billion yuan. Huawei highlighted that the quality of its operations and successful sales efforts in various business sectors played a pivotal role in driving profitability.
In 2023, Huawei made a notable comeback in the smartphone market with the launch of the Mate 60 Pro in China. Despite facing restrictions from the U.S. since 2019 which limited its access to high-end technology from American suppliers, the device was well-received for its 5G capabilities enabled by an advanced semiconductor chip. Reviews praised the product for its top-notch performance, contributing to a significant increase in Huawei’s smartphone sales in China. In the fourth quarter alone, the company saw a remarkable 47% surge in smartphone shipments compared to the previous year, propelling Huawei to the fourth position in terms of market share, surpassing Xiaomi according to Canalys data. Apple maintained its lead in the market, displaying a 6% growth in shipments year-on-year.
Aside from its success in the smartphone sector, Huawei also expanded its business into intelligent automobile solutions. The company reported a substantial 128.1% increase in revenue from this segment, reaching 4.7 billion yuan. Through partnerships with car manufacturers and the introduction of the Aito electric car brand, Huawei is actively involved in providing software and technology solutions to the automotive industry. This strategic move reflects Huawei’s commitment to diversifying its revenue streams and exploring new business opportunities.
Huawei’s consumer business also experienced positive growth in 2023, with revenue increasing by 17.3% year-on-year to 251.5 billion yuan. Despite facing challenges in the global market, Huawei managed to strengthen its position and attract consumers with its innovative products and services. The company’s focus on enhancing customer experience and expanding its product range has been instrumental in driving this growth.
ICT (Information and Communication Technology) remained the primary revenue driver for Huawei, generating 362 billion yuan in revenue in 2023, marking a 2.3% increase from the previous year. Additionally, the company witnessed a substantial growth of nearly 22% in cloud revenue, totaling 55.3 billion yuan. This growth underscores Huawei’s strong presence and expertise in providing cutting-edge technology solutions for businesses and consumers alike.
Huawei’s remarkable performance in 2023 reflects its resilience, innovation, and strategic diversification efforts. By capitalizing on its core strengths, expanding into new business areas, and delivering high-quality products and services, Huawei has positioned itself as a key player in the global telecommunications and technology landscape.