Huawei’s Success Story: Net Profit Doubles and Smartphone Market Comeback in 2023

Huawei’s Profit Doubles in 2023 as Smartphone and Automotive Businesses See Growth

In February 2024, Huawei showcased one of the largest displays at the Mobile World Congress in Barcelona. The Chinese telecommunications company reported that its net profit for 2023 more than doubled, attributing this success to better product offerings and a 9.6% year-on-year revenue growth to 704.2 billion yuan ($99.18 billion). Net profit saw a significant increase of 114.5% year-on-year to 87 billion yuan, driven by higher quality operations and sales of certain businesses.

Huawei made a comeback in the smartphone market with the release of the Mate 60 Pro in China in late August 2023. Despite facing restrictions on accessing high-end technology from American suppliers since 2019, the device offered download speeds associated with 5G, thanks to an advanced semiconductor chip. This led to increased sales in China, with Huawei’s smartphone shipments in the country surging by 47% in the fourth quarter, moving the company to fourth place in market share ahead of Xiaomi.

In contrast to its successes in smartphones and automotive solutions, Huawei’s consumer business experienced a challenging year in 2023 due to various factors such as rising commodity prices and increased competition from local brands like Oppo and Vivo. However, its intelligent automobile solutions business experienced a remarkable revenue growth of 128.1%, reaching nearly $5 billion yuan ($758 million) and solidifying its position as one of China’s biggest players in this sector. Additionally, ICT remained the biggest revenue driver for Huawei, generating over $360 billion yuan ($54 billion), with cloud revenue growing by nearly $11 billion yuan ($160 million) or nearly $5% year-on-year – almost three times more than other competitors

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