BEIJING (Transatlantic Today) – Despite facing persistent sanctions from the United States, Chinese technology giant Huawei announced a remarkable increase in net profits for the year 2023. The company revealed on Friday that its profits more than doubled compared to the previous year, reaching 87 billion yuan, equivalent to $12 billion, while its overall business volume expanded by 9.6%.
According to reports from The Wall Street Journal, Huawei’s revenue surged to $99 billion, marking a notable 10% increase from the previous year. The profit surge was attributed to heightened sales of consumer electronics, particularly its Mate 60 Pro smartphone, equipped with advanced 5G-like capabilities powered by Chinese-made chips. Additionally, the company cited increased demand for cloud computing services, operational improvements, divestment of certain businesses, and advancements in its automobile solutions division.
Huawei’s turnover rose to an impressive 704.2 billion yuan (90.5 billion euros or 97.5 billion dollars), demonstrating resilience amidst challenging global circumstances.
Commenting on the company’s performance, Ken Hu, the rotating president of Huawei, expressed confidence in the results, stating, “The group’s results in 2023 are in line with forecasts.” He further acknowledged the support of customers, partners, and stakeholders worldwide in navigating through adversities and sustaining growth.
According to Finanzas, Huawei has long been embroiled in the technological rivalry between China and the United States. Accusations from US authorities of espionage on behalf of the Chinese government have led to stringent sanctions since 2019, severing the company’s access to American technologies and components.
These restrictions compelled Huawei to pivot its focus towards software, connected devices, and business computing sectors. The company faced additional challenges due to US restrictions on advanced technology shipments to China and the ongoing chip war, making it increasingly difficult to procure essential components for artificial intelligence (AI) production.
In 2023, Huawei delivered a commendable performance. However, the company witnessed a sharp decline in net profit compared to previous years, with a year-on-year drop of 70%. Despite this, the company’s 2023 results are still much lower than the peak performance observed in 2020, which amounted to 891.4 billion yuan.
As a privately owned entity not listed on the stock exchange, Huawei is not obligated to disclose detailed financial results. However, the company’s resilience and adaptability amid challenging geopolitical dynamics underscore its enduring presence in the global technology landscape.
