Chinese tech giant Huawei Technologies has released its financial report for the first three quarters of 2023, indicating modest revenue growth and a substantial surge in profits. Huawei reported total revenues of 456.6 billion yuan ($62.4 billion), reflecting a 2.4% increase compared to the same period in the previous year. Meanwhile, the company’s profits skyrocketed by 177.8%, reaching 73.05 billion yuan.
Huawei attributes this substantial profit growth to several factors, including the proceeds from the sale of its Honor smartphone unit in November 2020. Additionally, improvements in management and sales strategies contributed to the profit boost. The company’s spokesperson highlighted the growth of its digital power, cloud, and auto parts businesses as key drivers of the revenue increase.
In the third quarter alone, Huawei recorded a 1.5% increase in revenue, amounting to 145.7 billion yuan. The Chairman of Huawei, Ken Hu, stated that this growth aligns with their forecasts. The release of the Mate 60 series in late August drove a significant uptick in Huawei’s smartphone sales during the third quarter, with research firms reporting a 37% year-on-year increase.
Despite facing challenges due to U.S. export controls since 2019, Huawei managed to secure its position as the sixth-largest smartphone brand in China during the third quarter, holding a market share of 12.9%. Honor, a brand under Huawei, retained its status as the most prominent brand in China with an 18% market share.
Huawei’s spokesperson emphasized that the third-quarter revenue growth was primarily driven by its digital power, cloud, and auto parts businesses, with smartphone sales playing a secondary role. The spokesperson also noted that the release of the Mate 60 series occurred relatively late in the quarter.
Furthermore, Huawei’s Smart Car CEO, Richard Yu, disclosed that the company’s electric-vehicle brand, Aito, received over 70,000 orders for its revamped M7 model. In response to the growing demand for its electric vehicles, Huawei is making substantial investments in its supply chain.
