Huawei Rebounds From US Sanctions With Smartphone Growth

Huawei has reported on its first half of 2023 financial results. The company’s sales figures reached CNY310.9 billion ($43.1 billion), marking a 3.1% increase compared to the previous year. Huawei’s net income surged to CNY46.63 billion ($6.4 billion), representing an impressive growth of 209% year-on-year (YoY).

The P50 Pocket. (Source: Huawei)

Although these figures are lower than Huawei’s peak revenue of CNY900 billion ($124 billion), achieved during better times, the company’s performance was achieved despite the constraints imposed by US sanctions. Huawei’s consumer business, encompassing smartphones and smart car solutions, is showing a turnaround. This segment witnessed revenue growth of 2.2%, reaching CNY103.5 billion ($14.3 billion). Huawei’s smartphone shipments rebounded with a 76.1% YoY growth.

Expanding beyond smartphones, Huawei’s ventures into other domains have also yielded positive results. Intelligent automotive solutions generated CNY1 billion ($100 million) in revenue during the first half of 2023. Additionally, cloud computing and digital power sectors contributed significantly, generating revenue of CNY24.1 billion ($3.3 billion) and CNY24.2 billion, respectively.

Despite the ban on equipment sales due to US sanctions, there are speculations that Huawei is planning a return to the 5G market by the end of the year with chipsets co-developed with China’s Semiconductor Manufacturing International Corporation (SMIC).

Huawei 1H23 FinancialsCNY (billion)USD (billion)
Net profit46.66.4
Net profit margin15.00%15.00%
ICT infrastructure167.223
Consumer business103.514.3
Cloud business24.13.3
Digital power24.23.3
Intelligent automotive solution10.1