Huawei Technologies experienced a marginal increase in revenue during the initial three quarters of 2023. The company attributed this growth to the expansion of its digital power and cloud divisions, along with the enhanced competitiveness of its vehicle components segment.
Huawei reported revenues of 456.6 billion yuan ($62.4 billion) for the first three quarters of the year, representing a 2.4% rise compared to the previous year. In contrast to the modest revenue increase, profit surged by 177.8% during this period, reaching 73.05 billion yuan, as calculated by Reuters.
The increase in profit was driven by payments related to Huawei’s sale of its Honor smartphone unit in November 2020, as well as enhancements in management and sales strategies, according to a spokesperson from the company.
In the third quarter, the company’s revenue increased by 1.5% to 145.7 billion yuan, as calculated by Reuters. Huawei’s rotating Chairman Ken Hu stated that this growth was “in line with forecast” in a press release.
Huawei’s smartphone sales experienced significant growth in the third quarter, largely attributed to the launch of the Mate 60 series at the end of August. Three research firms reported a 37% year-on-year increase in sales for the company, as per Counterpoint Research.
This signifies a recovery for Huawei, albeit from a relatively low starting point, as their smartphone business has been severely affected by U.S. export restrictions imposed on the company since 2019.
According to Counterpoint, Huawei now holds the sixth position among smartphone brands in China for the quarter, with a market share of 12.9%, up from 9.1% in the same period the previous year. Honor retained its position as the leading brand, with shipments totaling 11.8 million units and a market share of 18%, as reported by Counterpoint.
Nonetheless, the Huawei spokesperson credited the revenue growth in the third quarter to expansions in the digital power, cloud, and automotive parts sectors. It’s worth noting that the Mate 60 series was introduced relatively late in the quarter.
Richard Yu, the CEO of Huawei’s Smart Car division, revealed earlier this month that the Huawei-backed electric vehicle brand, Aito, had received over 70,000 orders for its revamped M7 model. He also mentioned that the company was making investments in its supply chain to meet the demand.
(Note: The currency conversion rate is $1 = 7.3165 Chinese yuan renminbi)
Reporting by David Kirton; Editing by Christian Schmollinger & Simon Cameron-Moore