CONNECT WITH US
TI(com)
Sponsored

Huawei defies US sanctions, surges in profit, and expands ecosystem in 2023

Jingyue Hsiao, DIGITIMES Asia, Taipei 0

Credit: AFP

Despite intensifying US sanctions, Huawei tried to prove it could navigate challenges and make progress by recording a surge in profit in 2023 in addition to a widening ecosystem and technological breakthroughs.

Huawei released its financial results for 2023. Its sales grew by 9.63% to CNY704 billion (US$97.49 billion), with net income surging by 144.5% to CNY86.95 billion. Huawei's R&D spending rose from CNY161.49 billion in 2022 to CNY164.72 billion.

According to the annual report, Huawei has undergone numerous trials over the past few years and has continuously grown amidst challenges. Huawei has cultivated a robust device ecosystem built upon HarmonyOS and Kirin, a broad computing ecosystem founded on openEuler and Kunpeng, an AI computing ecosystem anchored by CANN and Ascend, and a versatile developer ecosystem facilitated by Huawei Cloud as a centralized hub.

According to Huawei, HarmonyOS has been integrated into over 800 million devices. HarmonyOS has engaged over 9.5 million developers across Harmony, Kunpeng, Ascend, and Huawei Cloud, adding that the Ascend-based AI computing ecosystem has demonstrated rapid growth.

In 2023, Huawei unveiled the All Intelligence strategy to support various AI models and applications for all industries. The Kunpeng and Ascend ecosystems are steadily growing, with over 5.7 million developers and more than 6,300 partners completing over 17,400 solution certifications.

In addition to releasing Pangu Models 3.0, the company worked with more than 300 partners to build an intelligent industry ecosystem in the intelligent automotive solution domain.

As to consumer electronics, Huawei said it launched smartphones, including the Mate 60 Series, and unveiled a new ultra-high-end brand ULTIMATE DESIGN. As of the conclusion of 2023, Huawei had shipped a cumulative sum exceeding 100 million tablets and over 150 million wearable devices globally, catering to a user base exceeding 450 million in fitness and health.

Huawei's resurgence in areas including consumer electronics came at the expense of other vendors, particularly Apple. Nikkei Asia quoted Runar Bjorhovde, an analyst at Canalys, saying that Huawei reclaimed a position in the top five in the smartphone market in China, but most of its smartphone shipments remained in China.

Huawei financial summary (CNYm)

Financial

2019

2020

2021

2022

2023

YoY for 2023 (%)

Sales

858,833

891,368

636,807

642,338

704,174

9.63

Operating income

77,835

72,501

121,412

42,216

104,401

147.3

Net income

62,656

64,649

113,718

35,562

86,950

144.5

Operating margin (%)

9.1

8.1

19.1

6.6

14.8

Progit margin (%)

7.3

7.25

17.86

5.54

12.35

Source: Huawei, March 2024

Hauwei sales by business (CNYm)

Business

2022

2023

YoY (%)

ICT Infrastructure

353,978

361,997

2.27

Consumer

214,463

251,496

17.27

Cloud computing

45,342

55,287

21.93

Digital Power

50,806

52,607

3.54

Intelligent Automotive Solutions

2,077

4,737

128.07

Other

3,978

8,624

116.79

Elimination

-28,306

-30,574

Source: Huawei, March 2024

Huawei sales by region (CNYm)

Region

2022

2023

YoY (%)

China

403999

471303

16.66

EMEA

149206

145343

-2.59

Asia Pacific

48048

41041

-14.58

Americas

31898

35362

10.86

Other

9187

11125

21.10

Source: Huawei, March 2024