Huawei rebounds post US sanctions, expects 9% sales growth
What's the story
Huawei Technologies, the Chinese tech giant, is expecting a revenue of over CNY 700 billion (around Rs. 8.4 lakh crore) for 2023, Reuters has reported.
This figure indicates around 9% YoY growth from the CNY 642.3 billion in 2022.
This signifies that Huawei is bouncing back after US sanctions which started in 2019, severely affecting some of its businesses by restricting access to essential global technologies like advanced chips.
Details
Mate60 series marked a turning point for Huawei
Huawei's device business segment, including its smartphone business, performed better than expected in 2023.
Huawei launched its Mate60 series of smartphones in August, thought to be powered by a domestically developed chipset.
This launch marked the firm's comeback to the high-end smartphone market after years of struggling under US sanctions.
Consequently, the company's smartphone shipments skyrocketed 83% YoY in October, leading to an overall 11% growth in the Chinese smartphone market during the same period.
What Next?
Challenges and future plans for Huawei
Huawei recognizes significant challenges ahead, with Chairperson Ken Hu stating, "geopolitical and economic uncertainties abound, while technology restrictions and trade barriers continue to have an impact on the world."
To tackle these challenges, Huawei plans to improve its business operations' efficiency through measures like streamlining HQ, simplifying management, and ensuring consistent policy while making necessary adjustments.
Moreover, the company aims to focus on expanding its device business in 2024 by creating top-notch products and building high-end brands.