Saturday, February 24, 2024

Huawei’s annual sales nearly $100 billion due to China’s astonishing growth

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(Bloomberg) — Huawei Technologies Co.’s sales soared 9% in 2023, capping a dramatic year for the Chinese technology powerhouse as it countered Apple Inc. and U.S. sanctions with surprising advances in chip technology. Concluded.

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Revenue soared to more than 700 billion yuan ($98.7 billion), the fastest pace of growth in years, driven by a resurgence in the smartphone business and strong sales of 5G equipment. On a quarterly basis, sales rose 27% to at least 243.4 billion yuan, based on calculations from Bloomberg’s annual figures. This is a significant acceleration from the slight increase in the third quarter.

Huawei made headlines in 2023 when it launched a smartphone equipped with a sophisticated Chinese-made 7-nanometer Kirin processor, which drew national praise over U.S. regulations aimed at undermining the country’s high-tech industry. Ta. The revelations have sparked a debate in Washington about whether these containment measures have failed and what more needs to be done.

Huawei lost its reputation as a top smartphone player in 2019 after the U.S. cut it off from overseas suppliers, but it is trying to make a comeback. The Shenzhen-based conglomerate has emerged as a symbol of China’s determination to keep its geopolitical rivals in check. But Huawei itself warned of the dangers posed by the US government and a volatile global economy in 2024.

“After years of hard work, we managed to weather the storm. And now we’re almost back on track,” said one of several executives who will take turns in the chairman’s role. said Ken Hu, one of the members, in his traditional year-end message to staff. “We need to recognize that changes in the business environment are not only caused by geopolitical conflicts, but also by fluctuations in the global economic cycle.”

Huawei has enjoyed strong support in the country since being blacklisted in 2019. State-owned carriers have struck lucrative deals for Huawei in 5G and cloud computing, and other institutions have bought unprofitable businesses from the company.

The Mate 60 Pro, a gadget powered by a 7nm Kirin chip, has taken market share from Apple’s iPhone 15 since its launch in August. And Huawei has transformed itself into a major player in the semiconductor sector, which is exactly what the Biden administration is focused on reducing.

Huawei, traditionally a leader in networking equipment and smartphones, has established a network of chip factories and has received an estimated $30 billion in funding from the government and its home city of Shenzhen, according to the Semiconductor Industry Association.

Looking ahead to 2024, Huawei may have to contend not only with a relentless US campaign to contain China, but also with pressure to maintain technological progress.

The last challenge will be even more difficult, as it will put further strain on critical components for chip manufacturing that are already in short supply, such as equipment. Asked how she would respond to Huawei’s rise, Commerce Secretary Gina Raimondo said the United States would take the “strongest possible” action to protect national security.

To ensure its technological advantage, Huawei aims to increase investment in emerging technologies such as artificial intelligence.

“We need to actively take advantage of this opportunity and invest our limited resources in the most important strategic areas,” Hu wrote. “Our overall strategic direction is clear. We will continue to streamline our headquarters, simplify management, and ensure consistent policies, making adjustments as needed.”

(The second and subsequent paragraphs are updated with quarterly figures)

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