Huawei forecasts revenue growth to almost $100 billion by 2023
In an internal New Year’s message to employees, Huawei’s interim chairman Ken Hu said that 2023 was a very successful year for the company, and annual revenue is approaching the levels that were before the US sanctions, Reuters reports.
What is known
Huawei predicts that by the end of 2023, revenue will exceed 700 billion yuan ($98.5 billion). This is 9% more than in 2022.
By the way, Huawei first surpassed the $100 billion mark in annual revenue in 2018, even before the introduction of US sanctions. At the time, the company predicted that it would earn 150 billion in 2023, but as we already know, this did not happen.
However, Huawei is slowly recovering. “After years of hard work, we have managed to weather the storm. And now we are almost back on track,” emphasized Ken Hu.
In 2023, Huawei’s devices business segment, which also includes smartphone production, performed better than expected.
According to Counterpoint, Huawei smartphone shipments in October were up 83% year-on-year. This is probably a great merit of the Mate 60 line.
As a reminder, the US government imposed sanctions on Huawei in May 2019.
The main reason was the accusation of espionage and violation of US trade sanctions against Iran. The US government believed that Huawei’s equipment could be used by the Chinese government for espionage, which posed a threat to national security. This has led to restrictions on Huawei’s access to U.S. technology and components, including critical software and microchips.
Huawei’s revenue consists of several main areas. In the first half of 2023, the company’s main revenues came from the following sectors:
- ICT infrastructure: Accounted for a significant portion of the company’s revenue, amounting to CNY167.2 billion.
- Consumer business: Products for end users, such as smartphones, tablets, wearables, etc., generated revenues of CNY103.5 billion.
- Cloud services (Huawei Cloud): Generated revenue of CNY24.1 billion.
- Digital energy: Generated revenues of CNY24.2 billion.
- Intelligent automotive solutions (IAS): Revenues from this sector totaled CNY1 billion.
