Huawei’s Remarkable Comeback: From Survival Mode to $100 Billion Revenue by 2023


Huawei Growth

Huawei, a major player in the escalating tech rivalry between Washington and Beijing, has announced that it is on a positive trajectory for 2023.

The conglomerate, based in Shenzhen, shared on Friday that it anticipates generating over 700 billion yuan ($99 billion) in revenue in 2023. This reflects a 9% increase from the 642.3 billion yuan ($92.4 billion) recorded in 2022. Despite this growth, it remains below the approximately $123 billion achieved by Huawei in 2019.

Huawei Announces “Back on Track” with Revenue Growth

Huawei Growth

Huawei’s rotating chairman, Ken Hu, expressed optimism, stating in a year-end message to employees, “After years of hard work, we’ve managed to weather the storm. And now we’re pretty much back on track.”

This positive performance follows the launch of Huawei’s Mate 60 Pro smartphone in August. this device surprised industry experts who questioned the company’s ability to produce such an advanced device amidst U.S. efforts to limit China’s access to foreign chips. The Mate 60 Pro has gained significant popularity among consumers. This has enabled Huawei to capture market share from Apple in China, as per Counterpoint Research.

As of the end of September, Huawei secured the fifth position in the Chinese market, expanding its market share from 10% in the first quarter to 14% in the third quarter. Meanwhile, Apple experienced a decline in its market share from 20% to 15% during the same period.

Huawei’s device business delivered results that “surpassed expectations,” according to Huawei’s rotating chairman, Ken Hu, in his memo. However, the company has not provided specific details about the results.

Huawei Smartphones were Previously Competing for Top Spot Huawei Growth

Huawei, previously the second-largest global smartphone seller, lost its position due to severe U.S. sanctions in recent years. These sanctions hindered Huawei’s access to crucial components for its devices.

U.S. policymakers have consistently argued that Huawei poses a national security threat, contending that the Chinese government could potentially exploit the company’s equipment for spying. Despite Huawei’s repeated denials of these allegations and efforts to enhance its reputation in Washington, it faced significant challenges. However, in the current year, Huawei has begun to make a comeback.

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In March, Huawei declared that it was “out of crisis mode” and reported advancements in identifying substitutes for the components it had been denied due to U.S. sanctions. This signaled a positive step forward for the company in overcoming the challenges imposed by the restrictions.

Huawei is anticipated to sustain its success into the coming year, provided it can scale up the production of handsets featuring Kirin chips, as noted by Counterpoint analysts in a November report, specifically referring to the processors embedded in the Mate 60 Pro.

Huawei has Introduced New Nova Smartphones Huawei Growth

On Tuesday, the company introduced new smartphones under the Nova brand, part of its mid-range lineup. These devices are expected to gain popularity due to their relative affordability, according to analysts. This will significantly enhance the growth of Huawei in the coming yera.

This optimistic outlook contrasts with statements made just last year by a Huawei executive, who had mentioned that the company’s “fight to survive is not over yet.”

Huawei’s rotating chairman, Ken Hu, acknowledged the challenges that lie ahead in a memo, stating, “Hard work has enabled us to survive and grow, but we still have serious challenges ahead of us.” He cautioned that “geopolitical and economic uncertainties abound, while technology restrictions and trade barriers continue to have an impact on the world.”

Conclusion

Despite persisting challenges and geopolitical tensions, Huawei rebounds in 2023 with 9% revenue growth, driven by smartphone advancements and market share gains. The Mate 60 Pro’s success and Kirin chip production hold the key to sustaining this positive trajectory in the coming year. Huawei remains cautious but optimistic, aiming to navigate uncertainties and overcome technology barriers. As we draw down the curtains on the year 2023, we wait to see what Huawei has for us in 2024.

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