Huawei Achieves Robust Growth, Revenue Reaches $99.4 bn in 2023

Huawei Technologies has disclosed a surge in its sales revenue, marking a 9.63 percent increase in 2023, totaling 704.2 billion yuan (approximately $99.44 billion).
Huawei revenue in five years
The above chart prepared by Huawei team indicates that technology giant achieved steady growth in revenue in 2022, 2022 and 2023. Huawei had recorded revenue of 891.368 billion in 2020.

The noteworthy growth was primarily propelled by the consumer business segment, which experienced a remarkable 17.3 percent growth, amounting to 251.49 billion yuan. But Huawei’s ICT infrastructure business still contributes the largest revenue. Huawei is the #1 telecom network supplier to telecoms despite issues in several telecom markets, according to analysts.

The impressive performance underscores Huawei’s resurgence in the technology market, with the company achieving its fastest growth rate in four years.

Notably, the Chinese market served as a cornerstone for Huawei’s success, contributing 67 percent of its total sales. Meanwhile, sales from other regions were also noteworthy, with 21 percent from the Middle East and Africa, 6 percent from the Asia Pacific, and 5 percent from the Americas, Huawei’s annual report shows.

Breaking down the revenue streams, Huawei’s ICT infrastructure business generated 362 billion yuan, showing a modest increase of 2.3 percent. The consumer business segment, which includes the handset division, recorded a robust growth of 17.3 percent, reaching 251.5 billion yuan.

Moreover, Huawei’s cloud computing business demonstrated remarkable growth, surging by 21.9 percent to 55.3 billion yuan. The digital power business also experienced an uptick, with earnings of CNY52.6 billion, marking a 3.5 percent increase. Furthermore, Huawei’s intelligent automotive solution business witnessed remarkable growth, soaring by 128.1 percent to 4.7 billion yuan.

Geographically, Huawei generated sales of 471.3 billion yuan from China, 145.3 billion yuan from the EMEA region, 41.0 billion yuan from the Asia Pacific, 35.4 billion yuan from the Americas, and 11.1 billion yuan from other regions.

A substantial portion of Huawei’s success can be attributed to its persistent investment in research and development (R&D). In 2023, the company allocated CNY164.7 billion to R&D, accounting for 23.4 percent of its annual revenue. Over the past decade, Huawei’s cumulative investment in R&D stands at an impressive CNY1.11 trillion.

Despite facing challenges, including restrictions imposed by the United States on access to technology, Huawei has demonstrated resilience. The resurgence of its handset business, particularly with the introduction of the Mate 60 in the mainstream 5G smartphones market, has been instrumental in driving growth.

The company’s net profit surged by an impressive 144.5 percent to 87 billion yuan in 2023, with the net profit margin more than doubling to 12.35 percent compared to the previous year. Huawei attributed some of this success to ongoing payments from the sale of the Honor smartphone brand, completed in November 2020.

While Huawei remains relatively cautious about its achievements, opting to forgo traditional press conferences, the results affirm the company’s steadfast growth trajectory. With stable performance in its core ICT infrastructure business and significant advancements in cloud computing and intelligent automotive solutions, Huawei continues to solidify its position in the global market.

Baburajan Kizhakedath