Huawei reported a rebound in sales growth for 2023, driven by strong sales of its high-end Mate 60 series 5G smartphone, as the sanctions-hit company continues to face US scrutiny for its chip breakthrough.
Huawei Technologies reported a rebound in sales growth for 2023, driven by its comeback in the high-end 5G smartphone segment with the popular Mate 60 series, as the sanctions-hit company faces further US scrutiny for the chip breakthrough that powered its resurgence.
The privately held firm recorded a 9.63 per cent increase in revenue to 704.2 billion yuan (US$97 billion) in 2023, Huawei said in its annual report released on Friday.
Net profit for the year was 87 billion yuan, up 144.5 per cent year on year, partly thanks to recurring gains from its sale of budget smartphone unit Honor and other assets. Profit margin was 12.35 per cent in 2023, compared to a historical low of 5.5 per cent in 2022.
Sales from Huawei’s consumer business, which includes its popular flagship 5G smartphones and its co-developed Aito electric cars, recorded a 17.3 per cent increase to 251.5 billion yuan in 2023, being one of the strongest segments.
It was the first growth posted for the consumer business since 2021, after the US government tightened its restrictions against Huawei’s access to advanced semiconductors developed or produced using US technology, effectively crippling its smartphone business.
Last August, Huawei staged a surprise comeback with the Mate 60 Pro smartphone, powered by a home-grown advanced processor, the Kirin 9000s. This was Huawei’s first 5G smartphone since tightened US trade sanctions in 2020, and its release fuelled a wave of patriotic fervour among Chinese consumers that boosted domestic sales.
