Huawei, a Chinese telecoms giant, reported on Friday that improved product offerings contributed to a more than doubled net profit for 2023.

The corporation further ascribed the profit increases to a 9.6% yearly increase in revenue, or 704.2 billion yuan ($99.18 billion). To 87 billion yuan, net profit increased by 144.5% on an annual basis.

Profitability was also aided by certain companies’ higher sales and operational excellence, according to Huawei.

With the discreet launch of the Mate 60 Pro in China in late August of 2023, the telecoms giant returned to the smartphone market. According to reviews, the device’s sophisticated semiconductor chip allows it to deliver download rates comparable to 5G. This is true even though the United States has prohibited Huawei from obtaining high-end technology from American sources since 2019.

Huawei’s sales in China were boosted by the Mate 60 Pro. According to Canalys, Huawei’s smartphone sales into the nation increased by 47% in the fourth quarter compared to the same period last year, placing the business in fourth place by market share and ahead of Xiaomi. According to the data, Apple remained in the top spot with 6% year-over-year rise in shipments.

After seeing a greater than 28% decline in sales in 2021, Huawei stabilised its business in 2022, and its revenue increased by 0.9% to 642.3 billion yuan. The biggest net profit decline ever occurred in 2022, dropping by 69%. The company at the time blamed escalating expenditures on research and development, rising commodity prices, and China’s pandemic regulations.

Huawei announced on Friday that revenue for its intelligent vehicle solutions division increased to 4.7 billion yuan, a 128.1% increase from the previous year.

The business supplies automakers with software and other technology. Additionally, it has teamed up with a carmaker to launch the Aito electric vehicle brand.

According to Huawei, revenue in its consumer division increased by 17.3% in 2023 to 251.5 billion yuan.

ICT continued to be Huawei’s primary source of income, accounting for 362 billion yuan in sales in 2023—a 2.3% increase over the previous year.

Revenue from clouds increased by over 22% to 55.3 billion yuan.

(Adapted from Asia.Nikkei.com)

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