Huawei sees 100% profit increase in 2023 due to growth in smartphone and autos sectors

Huawei sees 100% profit increase in 2023 due to growth in smartphone and autos sectors

Huawei showcased one of the largest displays at the Mobile World Congress in Barcelona in February 2024. The Chinese telecommunications company announced on Friday that its net profit for 2023 more than doubled, thanks to improved product offerings and a revenue growth of 9.6% year-on-year, reaching 704.2 billion yuan ($99.18 billion). Net profit saw a significant increase of 144.5% year-on-year, reaching 87 billion yuan.

The company attributed the profit gains to higher quality operations, sales of certain businesses, and the release of the Mate 60 Pro smartphone in China. Despite U.S. restrictions on Huawei’s access to high-end technology, the Mate 60 Pro received positive reviews for its advanced semiconductor chip and download speeds associated with 5G. This contributed to the surge in Huawei smartphone shipments in China by 47% in the fourth quarter of 2023, pushing the company into fourth place by market share.

In 2022, Huawei saw a 0.9% increase in revenue to 642.3 billion yuan after stabilizing its business following a sales plunge in 2021. However, net profit fell by 69%, marking the largest drop on record. The company cited factors such as rising commodity prices, pandemic controls in China, and increased research and development spend.

Huawei also reported growth in other sectors, with its intelligent automobile solutions business seeing revenue increase by 128.1% from a year ago to 4.7 billion yuan. The company’s consumer business saw revenue grow by 17.3% year-on-year to 251.5 billion yuan in 2023. The Information and Communication Technology (ICT) sector remained the biggest revenue driver for Huawei, generating 362 billion yuan in revenue in 2023, up 2.3% from the previous year. Additionally, cloud revenue grew by nearly 22% to 55.3 billion yuan.

Huawei’s success in 2023 was fueled by its improved product offerings, revenue growth, and strategic partnerships in various sectors, contributing to its overall profitability and market positioning.

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