Huawei reports strong revenue growth in 2023

China’s Huawei Technologies (HWT.UL) saw its most rapid growth in four years in 2023, with a rebound in its customer segment and revenue from new firms like smart car components revving its recovery from U.S. boycotts.

Huawei, the Chinese technology giant, announced a 9.63% year-on-year increase in revenue to 704.2 billion yuan ($97.48 billion) for the fiscal year 2023. The consumer business segment contributed significantly to this growth, with a 17.3% increase to 251.49 billion yuan.

Consumer Business Growth

Although Huawei did not provide a breakdown of the consumer business figures, it includes the handset business, which experienced a resurgence in 2023. 

The successful launch of the Mate 60 helped Huawei regain traction in the mainstream 5G smartphone market, overcoming previous challenges posed by U.S. restrictions.

Continued Challenges and Growth

Since 2019, Huawei has faced restrictions on accessing U.S. technology, citing security concerns. Despite these challenges, 2023 marked the third consecutive year of revenue growth for the company, following a significant revenue decline in 2021 due to chip shortages. However, revenue remains below the peak achieved in 2020.

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Muted Celebration

In contrast to previous years, Huawei chose not to hold a press conference or launch event to announce its financial results. Rotating chairman Ken Hu acknowledged the company’s resilience in navigating challenges and achieving growth.

Financial Performance

Huawei reported a significant increase in net profit, rising by 144.5% to 87 billion yuan in 2023. The net profit margin more than doubled compared to the previous year, reaching 12.35%. 

A portion of this profit was attributed to ongoing payments from the sale of the Honor smartphone brand, which Huawei divested in November 2020.

Business Segments

While the core ICT infrastructure business remained stable, Huawei’s cloud business experienced notable growth, expanding by more than a fifth and generating revenue of 55.3 billion yuan.

Despite ongoing challenges and geopolitical tensions, Huawei’s resilience and adaptability have contributed to its continued growth and financial success in 2023.