Title: Huawei’s Q3 Revenue Sees Modest Growth Despite Global Challenges
Date: October 20, 2023
Chinese tech giant Huawei has reported a 1% increase in third-quarter revenue compared to the previous year, according to calculations by CNBC. Despite facing ongoing sanctions by the United States, Huawei’s performance has remained steady, particularly driven by the successful launch of its new Mate 60 Pro smartphone and growth in its electric car venture.
For the first nine months of the year, Huawei saw a 2.4% year-on-year rise in revenue, reaching 456.6 billion yuan ($62.33 billion) — the highest figure for this period since 2020 when the US-imposed sanctions began having an impact.
Huawei’s Mate 60 Pro smartphone, which quietly launched in China in late August, received positive reviews. Despite restrictions on accessing high-end technology, the smartphone offered download speeds associated with 5G, thanks to its advanced semiconductor chip. Counterpoint Research revealed that over 1.6 million Mate 60 series devices were sold within the first six weeks, with a majority of sales, about 75%, attributed to the Pro models.
In contrast, Apple’s iPhone 15, launched in September, is projected to sell 10 million units in China this year, contributing to an estimated total of 45.5 million iPhone sales in the country, according to CINNO Research. Counterpoint Research also noted that Huawei’s smartphone sales surged by 37% in the third quarter, while Apple experienced a 10% decline in sales compared to the same period last year.
Apart from smartphones, Huawei has also established a notable presence in China’s burgeoning new energy vehicle market. By providing operating systems and components for driver-assist technology to car manufacturers, Huawei has made significant strides in the industry. In collaboration with manufacturer Seres, Huawei launched its own car brand, Aito, in December 2021. Aito’s latest M7 received over 60,000 orders within a month of its release, and pre-orders for the forthcoming M9 SUV have already surpassed 15,000.
Although Huawei did not disclose revenue breakdowns by business segment in its latest update, the company has reported an overall improvement in profit margins. Huawei’s net profit margin for the first three quarters of the year stood at 16%, a slight increase from the first half of the year when it reported a profit margin of 15%. The telecommunications giant’s third-quarter revenue reached 145.7 billion yuan, representing a 1% growth compared to the same period last year.
Huawei has continued to expand its patent licensing business, securing deals with companies like Xiaomi and Ericsson to cover 5G connectivity. Additionally, the company has made strides in international markets by launching its cloud business in Saudi Arabia and opening a research lab in Finland for testing health and fitness wearables.
Despite facing allegations of being a national security risk, with alleged links to the Chinese Communist Party and the country’s military, Huawei has consistently denied these claims. The company remains committed to fulfilling its technological ambitions both domestically and globally.
CNBC’s Arjun Kharpal contributed to this report.