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

Huawei showcased one of the largest displays at the Mobile World Congress in Barcelona in February 2024. 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.

Despite facing restrictions on accessing high-end technology from American suppliers since 2019, Huawei made a comeback in the smartphone market with the release of the Mate 60 Pro in China in late August 2023. 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 2022, Huawei’s revenue grew by 0.9% to 642.3 billion yuan after a tough year in 2021 that saw a significant sales decline. Net profit fell by 69% in 2022, the largest drop on record, due to various factors such as rising commodity prices, China’s pandemic controls, and increased research and development spending.

Huawei’s intelligent automobile solutions business experienced a 128.1% revenue growth in 2023, reaching 4.7 billion yuan. The company’s consumer business also saw revenue growth of 17.3% year-on-year to 251.5 billion yuan. ICT remained the biggest revenue driver for Huawei in 2023, generating 362 billion yuan, with cloud revenue growing by nearly 22% to 55.3 billion yuan.