Huawei's Profit Soars in 2023, Driven by Smartphone and Auto Sector Growth

📝 SUMMARY: In 2023, Huawei experienced a remarkable financial turnaround, reporting that its net profit more than doubled over the year, a sharp recovery from previous struggles. The company's net profit rose by 144.5% to reach 87 billion yuan ($99.18 billion), while annual revenue grew by 9.6% to 704.2 billion yuan. This impressive growth was largely driven by Huawei's revitalized smartphone business and expanding presence in the automobile sector.

Huawei's resurgence in the smartphone market was marked by the release of the Mate 60 Pro in China. This model was notably successful, featuring advanced 5G capabilities enabled by a new semiconductor chip, which was a significant achievement given the ongoing U.S. restrictions on Huawei's access to high-end American technology since 2019. The Mate 60 Pro's performance boosted Huawei's domestic market share, with a 47% increase in shipments in the fourth quarter alone, positioning Huawei ahead of Xiaomi and trailing only behind Apple.

The company's intelligent automobile solutions business also saw significant growth, with revenues increasing by 128.1% to 4.7 billion yuan. Huawei has been diversifying its technology offerings, providing software and other technologies to car manufacturers and collaborating on the Aito electric car brand.

Despite a challenging environment marked by rising commodity prices and regulatory pressures in previous years, Huawei's diverse strategy has paid off. The ICT sector remained Huawei's largest revenue contributor, with a modest 2.3% increase to 362 billion yuan in 2023. Additionally, Huawei's cloud services continued to expand, with revenues growing nearly 22% to 55.3 billion yuan.

Overall, Huawei's 2023 performance highlights its successful navigation through significant challenges, leveraging its capabilities in high-tech sectors to regain momentum and reassert its presence in the global market.

🔍 SOURCE: https://www.cnbc.com/2024/03/29/huaweis-profit-doubled-in-2023-as-smartphone-autos-business-picked-up.html