Advertisement

Huawei sees 9 per cent sales growth in 2023 as it bounces back from US sanctions, but cautions on ‘serious challenges’ ahead

  • Huawei has been forced to diversify its revenue sources by venturing into new areas such as smart car systems
  • Rotating chairman says intelligent automotive solutions business became more competitive in the past year

Reading Time:2 minutes
Why you can trust SCMP
Huawei’s Hu says intelligent automotive solutions business became more competitive in the past year. Photo: Handout
Iris Dengin Shenzhen
Huawei Technologies expects its sales to surpass 700 billion yuan (US$99.1 billion) in 2023 after the US-sanctioned Chinese telecommunications giant launched a new 5G smartphone and amid multiple efforts to diversify its revenue streams.
Advertisement
This would mark a 9 per cent year-on-year increase in total sales for the full year from 642.3 billion yuan in 2022, better than the slim 0.9 per cent increase then and an improvement from 2021 when revenue plunged 28.6 per cent.

The achievement shows that the Shenzhen-based firm is “pretty much back on track”, according to a new year’s message from Huawei’s rotating chairman Ken Hu Houkun on Friday.

However, Hu also warned of “serious challenges” ahead in 2024 and urged employees to avoid “blind optimism”.

“Geopolitical and economic uncertainties abound, while technology restrictions and trade barriers continue to have an impact on the world. Together, these forces are reshaping business models and the global value chain,” Hu said.

Huawei, which briefly surpassed Samsung Electronics to lead global smartphone shipments in early 2020, has been battling US sanctions that hit its smartphone business and overseas sales hard in the past few years. It has been forced to diversify its revenue sources by venturing into new areas such as smart car systems, while looking to revive its handset businesses.
Huawei EV Aito, M7, featuring cutting edge, autonomous driving technology, is displayed in a Huawei shop in Beijing, China, on Sep. 17, 2023. Photo: SCMP/Simon Song
Huawei EV Aito, M7, featuring cutting edge, autonomous driving technology, is displayed in a Huawei shop in Beijing, China, on Sep. 17, 2023. Photo: SCMP/Simon Song
Advertisement