Huawei Technologies expects to generate over 700B yuan (about $98.7B) in revenue in 2023, according to Rotating Chairman Ken Hu.
“Our ICT (Information and Communication Technologies) infrastructure business has remained solid, and results from our device business surpassed expectations. Both our digital power and cloud businesses are growing steadily, and our intelligent automotive solutions have become significantly more competitive,” said Hu in a New Year Message for 2024 to the company.
The Chinese tech giant once was in race with Apple (NASDAQ:AAPL) and Samsung (OTCPK:SSNLF) to be the world’s biggest handset maker until U.S. restrictions, starting in 2019, began to curb its access to chip manufacturing tools needed for producing its most advanced models.
“After years of hard work, we’ve managed to weather the storm. And now we’re pretty much back on track,” Hu noted in the message.
The expected 700B yuan number suggests about 9% year-over-year revenue growth from the 642.33B yuan reported in 2022.
On a quarterly basis, Fourth quarter revenue jumped 27% to at least 243.4B yuan, Bloomberg News reported based on its calculations off the annual figure. This was a sharp acceleration from the third quarter’s slight increase.
At the end of August, Huawei surprised many by quietly launching its new phone, Mate 60 Pro. The company did not provide information on the power of the chip inside but people speculated that it could be using a 5G capable chip. In the third quarter, Huawei’s smartphone sales had grown 37% year-over-year on the back of Mate 60 series, which is powered by its SoC Kirin 9000S, Counterpoint Research had reported in October.
However, Hu noted that Huawei still has serious challenges ahead.
“Geopolitical and economic uncertainties abound, while technology restrictions and trade barriers continue to have an impact on the world,” Hu added.
Hu said that the company needs to invest its limited resources in the most critical strategic domains.
Speaking on AI, Hu noted that growing adoption of foundation models will demand an incredible amount of computing power. “So we need to build a leading computing backbone to help all industries thrive.”
Going into 2024, Hu said that the company’s device business needs to double down on its commitment to developing best-in-class products and building a high-end brand with a human touch.
“The device business should also work with partners to accelerate the development of native HarmonyOS mobile apps, achieve historical breakthroughs in the HarmonyOS ecosystem, and provide consumers with an inspired experience across all scenarios,” Hu noted.
Hu said that all business units should keep inspiring confidence while avoiding blind optimism. “Everyone needs to effectively identify risks – paying special attention to inventory risks – and boost operating efficiency.”
Hu noted that the company will “continue to streamline HQ, simplify management, and ensure consistent policy, while making adjustments where needed.”