Once fighting for its survival, Huawei, the Chinese technology giant that has been at the center of increasing tension between Washington and Beijing, has reported they are “back on track” with a strong outlook for 2023.
On Friday, the Shenzhen-based company announced it anticipates over 700 billion yuan ($99 billion) in revenue in 2023, partly due to better than forecasted performance in its electronics business. This is a 9% increase from the 642.3 billion yuan ($92.4 billion) revenue recorded in 2022. But it’s still short of the roughly $123 billion Huawei reported in 2019.
Huawei’s rotating chairman, Ken Hu, stated in a year-end message to employees, “After years of hard work, we’ve managed to weather the storm. And now we’re pretty much back on track.”
Huawei’s strong performance comes on the back of the August launch of its Mate 60 Pro smartphone, which surprised industry experts given the United States’ exhaustive efforts to limit China’s access to foreign chips.
The sophisticated device has been readily accepted by consumers, allowing Huawei to regain market share from Apple in China, as reported by Counterpoint Research. Huawei claimed the fifth spot in China’s markets as of the end of September, with its share expanding from 10% in the first quarter to 14% in the third quarter. During the same period, Apple experienced a decline from 20% to 15%.
Ken Hu mentioned in his memo that Huawei’s device business’s results exceeded expectations, though he did not elaborate on the details.
Huawei was previously the second-largest global smartphone seller, but severe US sanctions in recent years obstructed its ability to secure crucial components for its devices, leading to its decline.
US policymakers have consistently argued that Huawei presents a national security threat, suggesting that the Chinese government could potentially use Huawei’s equipment for espionage. Huawei has persistently denied these claims and attempted to enhance its position in Washington. However, this year signifies a turnaround for Huawei as it’s begun to find its path back to success.
In March, Huawei announced that it had exited “crisis mode” and reported progress in finding substitutes for the components it could no longer access due to the US sanctions.
Huawei’s success is set to continue in the coming year if it can increase the production of handsets powered by Kirin chips, according to Counterpoint analysts in a November report. They were referring to the processors used in the Mate 60 Pro.
On Tuesday, the company introduced new smartphones in its mid-range series, Nova. These models are expected to gain popularity due to their relative affordability, analysts predict.
This positive forecast contrasts with comments made by a Huawei executive last year, saying that the company’s “fight to survive is not over yet.”
“Hard work has enabled us to survive and grow, but we still have serious challenges ahead of us,” Hu noted in his memo on Friday. He cautioned about “geopolitical and economic uncertainties,” and stressed that “technology restrictions and trade barriers continue to impact the world.”
