Huawei Was Once Fighting For Its Survival. It Is Back To Nearly $100 Billion In Revenue In 2023

Huawei, the tech behemoth that has become a flashpoint in the Washington-Beijing rivalry, claims it is “back on track” with a solid 2023.

The Shenzhen-based company said Friday that it expects to generate more than 700 billion yuan ($99 billion) in sales in 2023, thanks in part to a stronger-than-expected performance in its electronics division. This represents a 9% increase over the 642.3 billion yuan ($92.4 billion) reported in 2022.

It is, however, less than the about $123 billion Huawei recorded in 2019.

“After years of hard work, we’ve weathered the storm.” “And now we’re pretty much back on track,” said Ken Hu, Huawei’s rotating chairman, in a year-end letter to staff.

The strong performance follows the August launch of Mate 60 Pro smartphone, which stunned industry experts who questioned how the company could have the technology to make such an advanced device in the face of sweeping US efforts to restrict China’s access to foreign chips.

Huawei Was Once Fighting For Its Survival.

According to Counterpoint Research, users have enthusiastically received the smartphone, allowing Huawei to wrest market share from Apple (AAPL) in China.

As of the end of September, The company ranked fifth in the Chinese market, increasing its share from 10% in the first quarter to 14% in the third quarter. Meanwhile, Apple’s share of the pie shrank from 20% to 15% within the same period.

The results of Huawei’s device business “surpassed expectations,” Hu stated in his memo without providing further information.

The Chinese company was once the world’s second-largest seller of smartphones, but it has since dropped out due to punishing US sanctions that have hampered its ability to purchase essential components for its products.

Huawei Was Once Fighting For Its Survival.

Policymakers in the United States have long claimed that Huawei posed a national security concern, claiming that the Chinese government may exploit the company’s technology to eavesdrop. The corporation has frequently refuted the charges and attempted to rehabilitate its image in Washington.

Huawei, on the other hand, has begun to recover this year.

In March, the business declared that it was “out of crisis mode,” and that it was making headway in finding replacements for the components that US sanctions had cut off.

According to Counterpoint analysts in a November research, the company will likely maintain its success in the coming year if it can grow production of handsets powered by Kirin chips, which are recognized inside the Mate 60 Pro.

According to analysts, the business unveiled new smartphones under Nova, its mid-range portfolio, on Tuesday, which are expected to gain appeal due to their relative price.

Huawei Was Once Fighting For Its Survival.

The upbeat forecast contrasts with comments made just last year by a Huawei executive, who stated that the company’s “fight to survive is not over yet.”

“Hard work has enabled us to survive and grow, but we still face significant challenges,” Hu wrote in his memo on Friday.

He noted that “geopolitical and economic uncertainties abound, while technology restrictions and trade barriers continue to have an impact on the world.”

SOURCE – (CNN)