Huawei Reports Modest Revenue Growth in Q3 Amidst New Smartphone Launch
Chinese tech giant Huawei has announced its third-quarter revenue figures, revealing a modest 1% increase compared to the same period last year. The company reported revenue of 145.7 billion yuan ($19.9 billion) for Q3 2023, according to calculations by CNBC. This growth comes despite the release of a popular new smartphone in late August and Huawei’s expanding sales in its electric car venture.
Huawei’s revenue for the first three quarters of the year rose by 2.4% to 456.6 billion yuan ($62.33 billion), marking the highest figure for this period since 2020. The company faced significant challenges due to U.S. sanctions imposed in 2019, restricting its access to high-end technology. However, reviews of the company’s new Mate 60 Pro smartphone indicate that it offers download speeds associated with 5G, thanks to an advanced semiconductor chip.
The Mate 60 Pro was quietly launched in China in late August, and it quickly gained popularity. More than 1.6 million devices from the Mate 60 series were sold during the first six weeks of sales, with the majority of sales being the Pro models. Counterpoint Research estimates approximately 75% of units sold were Pro models, accounting for around 1.2 million units sold.
In comparison, Apple’s new iPhone 15, launched in September, is expected to sell 10 million units in China this year, with an estimated total of 45.5 million iPhone sales in the country, according to estimates by Shanghai-based CINNO Research. Apple’s smartphone sales in the third quarter fell by 10% from the same period last year, while Huawei’s sales surged by 37%, according to Counterpoint Research.
Apart from its smartphone business, Huawei has been making strides in China’s new energy vehicle market. The company sells its operating system and components to car manufacturers, including driver-assist tech. In collaboration with manufacturer Seres, Huawei launched its own car brand, Aito, in December 2021. The latest model, M7, received over 60,000 orders within a month after its release. Additionally, pre-orders for Aito’s forthcoming M9 SUV have already reached 15,000.
Despite these successes, Huawei did not disclose revenue breakdowns by business segment in its latest update. The company did mention recording partial gains from the sale of certain businesses but did not provide specific details. Huawei reported a net profit margin of 16% for the first three quarters of the year, up from 15% in the first half when revenue grew by 3.1% to 310.9 billion yuan.
Huawei has been persistently expanding its patent licensing business, with recent deals with Xiaomi and Ericsson to cover 5G connectivity. The company has also been focusing on international markets, such as expanding its cloud business to Saudi Arabia in September. Additionally, Huawei opened a research lab in Finland this week to test health and fitness wearables.
The U.S. government has repeatedly labeled Huawei as a national security risk, citing alleged links to the Chinese Communist Party and the country’s military. Huawei has strongly denied these claims. The company’s efforts to regain its foothold in the global market continue, despite the ongoing challenges it faces from international controversies and restrictions.
(Note: This article is based on information and calculations from CNBC and other sources. The figures and statements mentioned in this article are taken from these sources and should be independently verified for accuracy.)