Smartphone makers would already be sweating because of Huawei’s mounting comeback, and according to the Chinese firm’s financial claims, competitors in other product categories might be feeling the heat too. According to the latest report, the company’s net profit more than doubled in 2023, and what is impressive about the following figures is that Huawei experienced success while its back was against the wall thanks to the constant trade roadblocks set up by the U.S.
Latest figures reveal that Huawei has netted $12 billion in profit, making it the highest in five years, excluding 2021
With a net profit of 87 billion yuan, Nikkei Asia reports that Huawei did not see such remarkable growth displayed on its balance sheets for half a decade, except for the year 2021, which was only because the company spun off its Honor smartphone arm. Despite facing continuous setbacks due to the export controls placed by the U.S., Huawei has successfully managed to stave off this adversity and thrive in the process. Additional details state that the former Chinese giant’s consumer electronics revenue grew 17.3 percent to 251.5 billion yuan last year (approximately $38.69 billion), and that momentum does not appear to be hitting a snag.
Even a trillion-dollar giant like Apple has to resort to business tactics such as discounting a bevy of products to get the ball rolling in China, but those efforts have been fruitless as the company was previously said to have suffered a double-digit percent shipment dip. Runar Bjorhovde, an analyst with Canalys, says that due to Huawei’s resurgence, Apple has been forced to increase its investments in China, with Tim Cook recently visiting the country and mentioning that the supply chain in the region is extremely critical to the company.
“Apple is feeling the heat most acutely from Huawei's resurgence. Lately, Apple has responded with increased investments into China, including significant spending on co-marketing campaigns, a new Apple store, and CEO Tim Cook’s visit, all initiatives to help it solidify its position in the market.”
For the entire 2023, the company’s revenue grew 9.6 percent to 704.2 billion yuan ($108.32 billion), up from 642.33 billion yuan ($98.74 billion) in 2022. Additionally, its spending bill on R&D reached a historic high of 164.7 billion yuan, making it around 23 percent of its annual revenue. With its success last year, Huawei has reportedly raised the bar for 2024, eyeing 100 million smartphone shipments and possibly introducing its first 5nm chipset later this year thanks to the collaboration with its foundry partner SMIC.
News Source: Nikkei
About the author: Omar Sohail is a reporter and analyst for Wccftech's mobile section, specializing in the technology and business of the mobile industry. His expertise lies in the intricate hardware supply chain, covering developments in semiconductor manufacturing, chip lithography, and camera sensor technology.
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