Huawei Company Profits Doubled in 2023 With Phone Sales, Soaring Autos Business

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On Friday, Chinese telecommunications giant Huawei announced that its net profit for 2023 had more than doubled, thanks to improved product offerings and robust revenue growth.

The company reported a 9.6% year-on-year increase in revenue to 704.2 billion yuan ($99.18 billion), while net profit surged by 144.5% year-on-year to 87 billion yuan.

Huawei credited its enhanced operational efficiency and increased sales across various business segments for significant profit gains.

Notably, the company made strides in the smartphone market in 2023 with the discreet launch of its Mate 60 Pro in China, featuring advanced semiconductor chips enabling 5G-level download speeds.

The company reported a nearly 22% growth in cloud revenue, reaching 55.3 billion yuan. (Credits: R.Vennenbernd)

Despite U.S. restrictions on Huawei’s access to cutting-edge technology from American suppliers since 2019, the Mate 60 Pro’s performance helped drive Huawei’s smartphone sales in China, with shipments surging by 47% in the fourth quarter.

In 2022, Huawei recorded a modest revenue growth of 0.9%, reaching 642.3 billion yuan, as it stabilized its business following a challenging year marked by a sales plummet of over 28% in 2021.

However, net profit in 2022 experienced a sharp decline of 69%, attributed to factors such as rising commodity prices, pandemic-related controls in China, and increased research and development expenditures.

The company’s consumer business also experienced robust growth, with revenue increasing by 17.3% year-on-year to 251.5 billion yuan in 2023. (Credits: Huawei)

Furthermore, Huawei highlighted significant growth in its intelligent automobile solutions business, with revenue soaring by 128.1% year-on-year to 4.7 billion yuan.

Huawei’s Information and Communications Technology (ICT) segment remained its primary revenue driver, generating 362 billion yuan in revenue in 2023, up by 2.3% from the previous year.

Nate O'Hara
Nate O'Hara
Nathan is a seasoned commerce writer with a passion for unraveling the intricacies of the business world and distilling them into engaging narratives. During his academic journey, he delved deep into subjects like economics, marketing, and entrepreneurship, honing his analytical skills and developing a keen understanding of market dynamics.

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