Huawei, the Chinese tech giant embroiled in geopolitical tensions between Washington and Beijing, has announced a robust outlook for 2023, signaling a recovery after facing significant challenges. The Shenzhen-based conglomerate anticipates generating over 700 billion yuan ($99 billion) in revenue in 2023, marking a 9% increase from the previous year’s 642.3 billion yuan ($92.4 billion) but still below the approximately $123 billion recorded in 2019.
In a year-end message to employees, Huawei’s rotating chairman, Ken Hu, declared the company is “back on track” after years of diligent efforts to weather the storm. This positive trajectory follows the successful launch of the Mate 60 Pro smartphone in August 2022, defying expectations and garnering strong consumer interest. Notably, the Mate 60 Pro’s technological advancements surprised industry experts, especially considering the challenges posed by U.S. restrictions on China’s access to foreign chips.
The Mate 60 Pro’s popularity has enabled Huawei to gain market share in China, overtaking Apple in the process. Counterpoint Research reports that Huawei’s share in the Chinese market rose from 10% in the first quarter to 14% in the third quarter of the year, while Apple’s share decreased from 20% to 15% during the same period.
Despite being a major player in the global smartphone market, Huawei faced setbacks in recent years due to U.S. sanctions, impeding its ability to secure critical components for its devices. The U.S. government has repeatedly alleged that Huawei poses a national security risk, suggesting the potential use of the company’s equipment for espionage by the Chinese government. Huawei has consistently denied these allegations and has sought to improve its standing in Washington.
March 2022 marked a turning point for Huawei, as the company declared it was “out of crisis mode” and reported progress in finding alternatives for components affected by U.S. sanctions. The successful launch of the Mate 60 Pro has contributed to Huawei’s positive momentum, and the company aims to continue this success by expanding production of handsets powered by Kirin chips, according to Counterpoint analysts.
Huawei’s recent launch of new smartphones under the Nova mid-range lineup further underscores its optimistic outlook. Analysts anticipate these models to gain popularity due to their relative affordability. However, despite the positive developments, Huawei acknowledges ongoing challenges, including geopolitical and economic uncertainties, technology restrictions, and trade barriers that continue to impact the global landscape.
In summary, Huawei’s 2023 revenue projections and recent market performance indicate a notable recovery for the tech giant, signaling resilience and adaptability in the face of challenging circumstances. The company’s ability to navigate geopolitical tensions and innovate technologically will likely play a crucial role in sustaining its upward trajectory in the coming year.