Huawei sees remarkable growth in 2023, bolstered by consumer segment and new businesses.

In a remarkable resurgence, Huawei Technologies experienced its most rapid growth in four years in 2023, propelled by a resurgence in its consumer segment and the success of new ventures such as smart car components, marking a significant rebound from U.S. sanctions.

The company reported a 9.63% year-on-year increase in revenue, reaching 704.2 billion yuan ($97.48 billion), with the consumer business emerging as the primary driver, recording a robust growth of 17.3% to 251.49 billion yuan.

While specific details regarding the consumer segment were not disclosed, it encompasses Huawei’s handset business, which witnessed a resurgence with the introduction of the Mate 60 series, signaling a revival in mainstream 5G smartphones despite U.S. restrictions.

Since 2019, U.S. sanctions have limited Huawei’s access to American technology, citing security concerns, an allegation vehemently denied by the company. Despite these challenges, 2023 marked the third consecutive year of growth for Huawei, following a sharp revenue decline in 2021 due to chip shortages, although revenue remains below the peak achieved in 2020.

Unlike previous years, Huawei opted for a subdued approach to its achievements, forgoing the customary press conference and launch event. Rotating chairman Ken Hu acknowledged the company’s resilience, stating, “We’ve navigated through significant challenges in recent years, yet have continued to grow.”

Net profit surged by 144.5% to 87 billion yuan in 2023, with the net profit margin more than doubling compared to the previous year, reaching 12.35%. A portion of this increase stemmed from ongoing payments resulting from the sale of the Honor smartphone brand in November 2020.

While Huawei’s core ICT infrastructure business remained stable, its cloud business experienced notable growth, generating revenue of 55.3 billion yuan, marking a more than 20% increase. Additionally, the company’s smart car software and components business, established four years ago, witnessed substantial growth, increasing by 128.1% year-on-year to 4.7 billion yuan. Huawei recently announced plans to spin off this unit into a separate entity.

Richard Yu, managing director and chairman of Huawei’s smart car solutions, projected that the smart car unit would likely achieve profitability from April onwards, following substantial investments and losses incurred over the past year.