Huawei Technologies witnessed its biggest growth in four years in 2023, indicating a significant rebound from U.S. sanctions, with its consumer segment leading the charge and revenue from new ventures like smart car components bolstering its recovery.
Revenue surged by 9.63% year-on-year to reach CNY 704.2 billion ($97.48 billion), with the consumer business emerging as the primary contributor, marking a notable 17.3% growth to CNY 251.49 billion.
Although Huawei did not provide a detailed breakdown of the consumer segment, it includes its handset division, which experienced a resurgence last year, particularly with the Mate 60 series, overcoming challenges posed by U.S. restrictions.
Since 2019, U.S. sanctions have limited Huawei’s access to American technology and markets, alleging security concerns, a charge vehemently denied by the company. Despite this, 2023 marked Huawei’s third consecutive year of growth following a significant revenue dip in 2021 due to chip supply shortages.
Huawei, typically known for its elaborate press conferences, opted for a low-key approach this time, foregoing its annual launch events.
Rotating chairman Ken Hu, in a press release, expressed satisfaction with the results, highlighting the company’s resilience amid adversity.
The net profit for 2023 skyrocketed by 144.5% to CNY 87 billion, with the net profit margin more than doubling compared to the previous year, standing at 12.35%. A portion of this surge was attributed to continued payments from the sale of the Honor smartphone brand, sold by Huawei in November 2020.
Despite challenges, Huawei’s core ICT infrastructure business remained steady, while its cloud division expanded by over 20%, raking in revenue of CNY 55.3 billion.
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