According to remarks made by rotating chairman Ken Hu in an internal new year greeting obtained by Reuters, the Chinese telecom giant Huawei Technologies anticipates reporting sales above 700 billion yuan ($98.5 billion) for 2023.
The statistic shows a revenue gain of about 9% from the 642.3 billion yuan reported in 2022 to the current year.
The prediction provides more proof that Huawei is making a comeback following US sanctions that devastated some of its business lines in 2019 by limiting access to vital international technologies like cutting-edge semiconductors.
“We appreciate our value chain partners sticking by us throughout good times and bad. Hu added, “I also want to congratulate all of the Huawei team members for accepting the challenge and never giving up. “We’ve weathered the storm after years of arduous struggle. And we’re essentially back on course now.”
Hu stated in the memo to employees that 2023 saw better-than-expected performance from Huawei’s device business sector, which includes its smartphone division.
Huawei unveiled the Mate60 line of smartphones in August, which is thought to be powered by a CPU that was built domestically. After struggling for years due to U.S. sanctions, the release was widely seen as Huawei’s comeback into the high-end smartphone market.
According to Counterpoint, Huawei’s smartphone shipments increased 83% in October compared to the same month last year, contributing to the 11% growth of the Chinese smartphone industry as a whole.
In the letter, Huawei expressed its outlook for 2024, stating that one of its primary business lines for growth will be the device sector.
“Our 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 letter read.
However, Huawei stated in the letter that it has a lot of obstacles to overcome.
“Geopolitical and economic uncertainties abound, while technology restrictions and trade barriers continue to have an impact on the world,” Hu said.
Huawei would prioritise enhancing the effectiveness of its commercial operations in order to address these issues, according to Hu. “Streamline HQ, simplify management, and ensure consistent policy, while making adjustments where needed” were some of the objectives included in this.
Three sources with knowledge of the conversations claim that Huawei Technologies, a Chinese company, has previously asked Mercedes Benz and Audi, a division of Volkswagen, if they would be interested in purchasing modest shares in its smart car software and components business.
According to them, the action is intended to broaden its alliances beyond Chinese companies. According to a source knowledgeable on the subject, Huawei, which has been the focus of U.S. sanctions since 2019, also expects that the presence of international investors will help defend the company against any further geopolitical conflicts.
