In a surprising turn of events, Huawei, the embattled tech giant at the center of the US-China technological rivalry, announced on Friday that it is “back on track” with a projected revenue exceeding 700 billion yuan ($99 billion) for the year 2023. This marks a remarkable 9% increase from the 2022 figure of 642.3 billion yuan ($92.4 billion), signifying a significant recovery for the Chinese conglomerate.
Ken Hu, Huawei’s rotating chairman, expressed optimism in a year-end message to employees, stating, “After years of hard work, we’ve managed to weather the storm. And now we’re pretty much back on track.” Hu’s message follows the successful launch of the Mate 60 Pro smartphone in August, a device that defied industry expectations and showcased Huawei’s technological prowess.
The Mate 60 Pro’s advanced features captivated consumers, enabling Huawei to gain market share in China at the expense of its American rival, Apple. Counterpoint Research reported that Huawei secured the fifth position in the Chinese market by the end of September, growing its share from 10% in the first quarter to 14% in the third quarter. During the same period, Apple saw a decline from 20% to 15% in its market share.
Huawei’s resurgence is particularly noteworthy as the company faced significant challenges due to US sanctions in recent years. The sanctions, imposed by the United States, restricted Huawei’s access to critical components for its devices, resulting in the loss of its position as the world’s second-largest seller of smartphones.
Despite ongoing allegations from US policymakers that Huawei poses a national security risk, the company has vehemently denied such claims and has been working to improve its standing in Washington. In March, Huawei declared it was “out of crisis mode” and reported progress in finding alternative components to replace those impacted by US sanctions.
The company’s success is expected to continue into the new year, contingent on its ability to expand production of handsets powered by Kirin chips, the processors featured in the popular Mate 60 Pro. Huawei recently launched new smartphones under the Nova brand, its mid-range lineup, which analysts predict will gain popularity due to their relative affordability.
However, Hu cautioned in his memo that challenges persist, emphasizing the uncertainties posed by geopolitical and economic factors, as well as the ongoing impact of technology restrictions and trade barriers on a global scale. Nevertheless, Huawei’s strong performance in 2023 suggests a remarkable turnaround for the company, proving its resilience in the face of adversity.