Huawei, the global tech giant, announced a robust outlook for 2023, indicating a substantial recovery from challenges posed by US sanctions and geopolitical tensions. The Shenzhen-based conglomerate expects to generate over 700 billion yuan ($99 billion) in revenue in 2023, marking a 9% increase from the 2022 figure of 642.3 billion yuan ($92.4 billion). While this is a positive trajectory, it remains below the approximately $123 billion revenue recorded in 2019.
Huawei’s rotating chairman, Ken Hu, expressed optimism in a year-end message to employees, stating, “After years of hard work, we’ve managed to weather the storm. And now we’re pretty much back on track.” The company’s strong performance in 2023 is attributed, in part, to the successful launch of the Mate 60 Pro smartphone in August, which surpassed industry expectations.
The Mate 60 Pro’s advanced technology capabilities surprised experts, especially in the face of US restrictions on China’s access to foreign chips. The smartphone’s popularity has enabled Huawei to gain market share in China, surpassing Apple. According to Counterpoint Research, Huawei’s share in the Chinese market increased from 10% in the first quarter to 14% in the third quarter of 2023, while Apple’s share decreased from 20% to 15% during the same period.
Once the world’s second-largest smartphone seller, Huawei faced setbacks due to US sanctions restricting access to critical components. The company has consistently denied allegations of posing a national security risk. In March 2023, Huawei signaled progress by stating it was “out of crisis mode” and actively working on alternatives for restricted components.
According to Ken Hu, the company’s device business exceeded expectations, although specific details were not provided. Huawei’s success is expected to continue in 2024, contingent on expanding the production of handsets powered by Kirin chips, as seen in the Mate 60 Pro.
Despite the positive outlook, Hu acknowledged ongoing challenges, citing geopolitical and economic uncertainties and the impact of technology restrictions and trade barriers. The company remains focused on navigating these challenges and sustaining its growth trajectory in the dynamic global tech landscape.
