Resilient Huawei: Steadily Rebounding to a $100 Billion Revenue in 2023
Huawei bounces back with an impressive 9% revenue growth, marking a remarkable turnaround from the challenges it faced due to the US-China tech rivalry
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Huawei, the tech giant at the center of the intensifying competition between the US and China, has reported a promising outlook for 2023, indicating a strong recovery.
The Shenzhen-based conglomerate announced on Friday that it anticipates generating over 700 billion yuan ($99 billion) in revenue by 2023, driven in part by the robust performance of its electronics division. This represents a 9% increase from the 642.3 billion yuan ($92.4 billion) reported in 2022. Nevertheless, it remains lower than the approximately $123 billion revenue logged by Huawei in 2019.
"After years of dedication, we have successfully overcome the challenges. Now, we are back on course," quoted Ken Hu, Huawei's rotating chairman, in his year-end message to employees.
This remarkable achievement follows the release of Huawei's Mate 60 Pro smartphone in August. The launch surprised industry experts who doubted the company's capability to develop such an advanced device amidst the United States' attempts to limit China's access to foreign chips.
Consumers have eagerly adopted smartphones, resulting in Huawei gaining market share from Apple in China, as reported by Counterpoint Research. By the end of September, Huawei had risen to fifth place in the Chinese market, increasing its share from 10% in the first quarter to 14% in the third quarter. On the other hand, Apple's market share decreased from 20% to 15% during the same period.
Results from Huaweis device business "surpassed expectations," Hu said in his memo, without providing details.
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The Chinese company used to be the world's second-largest smartphone seller, but lost this position due to damaging US sanctions that hindered its access to essential components. US officials have consistently argued that Huawei is a national security threat, asserting that the Chinese government could use the company's equipment for spying. Despite Huawei's denials and efforts to improve its reputation in Washington, it has struggled to regain its former status.
This year marked a turning point for Huawei as the company began to regain its footing. In March, Huawei announced that it was no longer in crisis mode and shared updates on its efforts to secure alternative components after being affected by US sanctions.
A Huawei Technologies Co. store in Beijing, China, on Friday, September 22, 2023.
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Analysts from Counterpoint reported in a November statement that the company is anticipated to maintain its success in the upcoming year, on the condition that it can increase the manufacturing of mobile devices equipped with Kirin chips, particularly those found in the Mate 60 Pro. The company also debuted new smartphones from its mid-range Nova lineup on Tuesday, which analysts predict will become popular due to their affordable price point.
The optimistic perspective is a departure from statements made by a Huawei executive just a year ago, who had mentioned that the company's struggle for survival was far from over. "Although our hard work has allowed us to survive and thrive, we still face significant challenges," Hu wrote in his memo on Friday.
He warned that "geopolitical and economic uncertainties abound, while technology restrictions and trade barriers continue to have an impact on the world."
