Chinese telecommunications giant Huawei announced on Friday that its net profit surged in 2023, more than doubling compared to the previous year, buoyed by improved product offerings.
The company credited this substantial profit growth to a 9.6% year-on-year increase in revenue, reaching 704.2 billion yuan ($99.18 billion). Net profit soared by an impressive 144.5% year-on-year, reaching 87 billion yuan.
Huawei highlighted that enhanced operational efficiency and robust sales across various sectors significantly contributed to its profitability.
Despite challenges, including U.S. restrictions on accessing cutting-edge technology from American suppliers since 2019, the company experienced a revival in the smartphone market in 2023.
Notably, the discreet launch of its Mate 60 Pro in China in late August garnered positive reviews, with the device boasting download speeds associated with 5G, powered by an advanced semiconductor chip.
In the fourth quarter, Huawei saw a significant boost in smartphone sales in China, driven by the popularity of the Mate 60 Pro.
According to Canalys, Huawei’s smartphone shipments surged by 47% compared to the previous year, propelling the company to fourth place in market share ahead of Xiaomi. Meanwhile, Apple maintained its leading position with a 6% year-on-year increase in shipments.
Despite a challenging business environment in 2022, Huawei managed to stabilize its revenue, which grew modestly by 0.9% to 642.3 billion yuan.
This followed a sharp decline of over 28% in sales in 2021, leading to a substantial 69% drop in net profit, the largest on record.
The company attributed these challenges to factors such as rising commodity prices, pandemic-related controls in China, and increased spending on research and development.
Huawei also reported notable growth in its intelligent automobile solutions business, with revenue increasing by 128.1% from the previous year to 4.7 billion yuan.
Huawei’s involvement in the automotive industry extends beyond hardware, as it provides software and other technological solutions to car manufacturers. Additionally, the company has forged partnerships, such as with an automaker for the Aito electric car brand.
In 2023, Huawei’s consumer business witnessed significant growth, with revenue increasing by 17.3% year-on-year to 251.5 billion yuan.
The Information and Communication Technology (ICT) sector continued to be Huawei’s primary revenue driver, generating 362 billion yuan in revenue in 2023, reflecting a 2.3% increase from the previous year.
Moreover, the company experienced robust growth in its cloud services, with revenue surging by nearly 22% to 55.3 billion yuan.
