Huawei Reports Modest Revenue Growth in H1 2023, Lifted By ICT Infrastructure

Shenzhen-based technology giant Huawei Technologies has announced a modest yet notable revenue increase in the first half of 2023, led by its core information and communications technology (ICT) infrastructure and consumer businesses.
2023 Huawei CFO Sabrina MengThe company revealed that its revenues reached 310.9 billion yuan ($43.01 billion) in H1 2023, marking a 3.1 percent growth compared to the same period in the previous year. This upturn was accompanied by a substantial rise in profit margin, reaching 15 percent, resulting in a net profit of 46.6 billion yuan. These figures indicate a three-fold improvement from the previous year, according to calculations by Reuters.

Huawei in 2023 H1

ICT infrastructure business — CNY167.2 billion
Consumer business — CNY103.5 billion
Cloud business — CNY24.1 billion
Digital power business — CNY24.2 billion
Intelligent automotive solution (IAS) business — CNY1 billion

A Huawei spokesperson attributed the company’s profitability to improvements in operational efficiency, sales strategy, and a well-balanced product mix.

Huawei’s ICT infrastructure segment, encompassing 5G base stations and enterprise systems, played a significant role in the revenue surge, contributing 167.2 billion yuan. Meanwhile, the consumer business, which includes smartphones and other devices, added 103.5 billion yuan to the overall revenue figure.

Meng Wanzhou, Huawei’s rotating chairperson and daughter of its founder, Ren Zhengfei, stated, “In the first half of 2023, our ICT infrastructure business remained solid and our consumer business achieved growth.”

Richard Yu, head of Huawei’s consumer business, also highlighted positive developments, mentioning that the company’s handsets are poised for a comeback. Huawei’s domestic mobile market share experienced an impressive 76.1 percent growth in the second quarter, signaling a rebound after facing challenges due to several rounds of U.S. restrictions on technology exports.

Despite these setbacks, research firms have expressed optimism regarding Huawei’s future. They predict that the company will resume production of 5G smartphones by the end of the year by sourcing chips domestically, effectively sidestepping the U.S. restrictions that limited Huawei’s technological capabilities.

As the technology landscape continues to evolve, Huawei’s resilience and adaptability are positioned to play a pivotal role in the company’s journey to regain and potentially surpass its previous market standing.