Huawei’s consumer business group including Huawei smartphones and smart car solutions recorded growth and increased revenue for the first time since 2020. The latest statics are revealed in the H1 2023 business results of Huawei. It shows CNY310.9 billion in revenue, with a year-on-year increase of 3.1% and a net profit margin of 15.0%.
Huawei smartphones and electric cars rose 2.2 percent to 103.5 billion yuan (14 billion US dollars). The company said its performance is going in line with expectations.
Richard Yu, CEO of Huawei Consumer and Smart Car Business Group said that Huawei’s flagship smartphones are making a comeback. He gave this statement after launching HarmonyOS 4 operating system at Huawei Developer Conference (HDC) 2023.
In the second quarter of this year, Huawei embarked on a new journey by returning among the top 5 smartphone makers. The company also announced that its Huawei P60 and Mate X3 smartphones achieved the second spot in the premium device segment on the home ground. According to IDC, Huawei sold about 14.3 million units in China for the first half of 2023. This is a 40 percent growth as compared to last year.
Back in 2019, the US commerce ministry banned Huawei from buying essential technologies including chipsets and software such as GMS. In the following year, the US also restricted the firm from printing new flagship Kirin and other chipsets via the likes of TSMC and Samsung.
In 2021, it started from scratch and began selling 4G smartphones. With the lack of 5G chipsets and GMS, Huawei’s consumer business, especially, smartphone sales tumbled massively, which already start in late 2020.
Despite all of the issues, Huawei invested heavily in its operating system – HarmonyOS, and chip-making tools to make a breakthrough. Although chip manufacturing is pretty difficult, the company keeps on digging in this field with its homegrown partners.
On the other hand, Huawei also developed an industry-leading smart car solution business, which has now started to pay off for the past hard work.
Of course, Huawei has many challenges up ahead but an increase in revenue and improved consumer business operations including smartphones could be a sign for its future.