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Huawei’s profit doubled in 2023 thanks to the recovery of the smartphone and automobile sectors

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Huawei presented one of the largest screens at the Mobile World Congress in Barcelona in February 2024.

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BEIJING — Chinese telecommunications company Huawei said Friday its 2023 net profit more than doubled thanks to better product offerings.

The company also attributed the profit gains to revenue growth of 9.6% year-on-year to 704.2 billion yuan ($99.18 billion). Net profit increased 144.5% year-on-year to 87 billion yuan.

Better operations and sales from some companies also contributed to profitability, according to Huawei.

The telecommunications company returns to the smartphone market in 2023 with the discreet release of its Mate 60 Pro in China at the end of August. Reviews have noted that the device offers download speeds associated with 5G, thanks to an advanced semiconductor chip. This is despite American restrictions since 2019 on Huawei’s ability to access high-end technology from American suppliers.

The Mate 60 Pro helped boost Huawei’s sales in China. In the fourth quarter, Huawei smartphone shipments in the country jumped 47% compared to a year ago, placing the company in fourth place in terms of market share, ahead of Xiaomi, according to Canalys. Apple retained the top spot with 6% annual growth in shipments, the data showed.

Huawei’s revenue rose 0.9% to 642.3 billion yuan in 2022, as the company stabilized its business during a difficult year after a more than 28% drop in sales in 2021. Net profit in 2022 fell 69%, the biggest drop on record. The company then cited rising raw material prices, Chinese pandemic controls and increased research and development spending.

Huawei also said Friday that its intelligent automotive solutions business saw revenue increase 128.1 percent from last year to 4.7 billion yuan.

The company sells software and other technology to automakers. It also partnered with an automaker for the Aito electric car brand.

Huawei said its consumer business saw revenue increase 17.3% year-on-year to 251.5 billion yuan in 2023.

ICT remains Huawei’s biggest revenue driver by far, with 362 billion yuan in revenue in 2023, up 2.3% from last year.

Cloud revenue increased nearly 22% to 55.3 billion yuan.

—Arjun Kharpal of CNBC contributed to this report.

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