In February 2024, Huawei showcased its largest display at the Mobile World Congress in Barcelona. The Chinese telecommunications company reported a significant increase in net profit for 2023, which was attributed to improved product offerings and a 9.6% year-on-year revenue growth to 704.2 billion yuan ($99.18 billion). Net profit saw a substantial surge of 114.5% year-on-year to 87 billion yuan. Huawei credited the profitability to higher quality operations and sales of some businesses.
In the smartphone market, Huawei made a comeback in 2023 with the launch of the Mate 60 Pro in China. Despite restrictions from the US since 2019, Huawei’s device offers download speeds associated with 5G due to an advanced semiconductor chip. The release of the Mate 60 Pro helped drive Huawei’s smartphone sales in China, with shipments in the fourth quarter increasing by 47% year-on-year. This placed Huawei fourth in market share ahead of Xiaomi.
In contrast, Huawei faced challenges in other areas such as its revenue growth in consumer business which grew by only 17.3% to $362 billion yuan compared to $642.3 billion yuan in revenue from intelligent automobile solutions business which saw a massive increase of over $4 billion yuan.
Overall, despite these challenges, it is clear that Huawei has been able to adapt and innovate within certain sectors while still facing limitations imposed by external factors like government restrictions and economic conditions like rising commodity prices and strict pandemic controls.
It’s important to note that while net profit saw a substantial surge for Huawei, it’s worth mentioning that their revenue from ICT remained their biggest revenue driver at $362 billion up by only around $8 million compared to previous year and cloud revenue also saw significant growth but not enough for overall revenue growth
