Huawei Reports Modest Revenue Growth for First Three Quarters
Chinese tech giant Huawei Technologies has announced a slight increase in revenue for the first three quarters of 2023.
The company reported revenues of 456.6 billion yuan ($62.4 billion), marking a 2.4% growth compared to the same period last year. Despite the modest rise in revenue, Huawei's profit surged by 177.8% to 73.05 billion yuan during the same period.
Huawei attributed the rise in profit to various factors, including payments related to the sale of its Honor smartphone unit in November 2020, as well as improvements in management and sales strategies. The company's spokesperson also highlighted the growth of its digital power, cloud and auto parts businesses as contributing factors to the revenue growth.
In the third quarter alone, Huawei's revenue increased by 1.5% to 145.7 billion yuan. The company's rotating Chairman, Ken Hu, stated that this growth was in line with their forecast. Huawei's smartphone sales experienced a boost in the third quarter, driven by the release of the Mate 60 series in late August. Research firms reported a 37% year-on-year increase in Huawei's smartphone sales during this period.
Despite facing challenges due to U.S. export controls imposed since 2019, Huawei managed to rank as the sixth-largest smartphone brand in China during the third quarter, with a market share of 12.9%. Honor, a brand under Huawei, remained the biggest brand in China with an 18% market share.
Huawei's spokesperson emphasized that the revenue growth in the third quarter was primarily driven by the digital power, cloud and auto parts businesses, rather than the smartphone sales. The spokesperson also mentioned that the release of the Mate 60 series occurred relatively late in the quarter.
Additionally, Huawei's Smart Car CEO, Richard Yu, revealed that the company's electric-vehicle brand, Aito, received over 70,000 orders for its revamped M7 model. Huawei is investing in its supply chain to meet the growing demand for its electric vehicles.
Huawei reported a modest 2.4% increase in revenue for the first three quarters of 2023.
Profit surged by 177.8% during the same period, attributed to the sale of the Honor smartphone unit and improvements in management and sales strategies.
Revenue in the third quarter rose by 1.5%.