Huawei Reports 3% Revenue Growth in H1 2023 Despite US Sanctions

Chinese tech giant Huawei reported a 3% increase in revenue for the first half of 2023, with a widened profit margin, despite sanctions limiting access to US processor chips and hardware. other technologies. In response to U.S. restrictions that have heavily impacted its smartphone business, Huawei has refocused its business on selling network equipment to industries such as hospitals, ports and electric car brands, which it believes are less vulnerable to penalties.

In the six months to June, Huawei’s revenue rose 3.1% to 310.9 billion yuan ($43.1 billion). Although the company did not disclose the exact profit figure, it said its profit margin was 15%, which was a significant increase from the 4.3% margin in the first quarter of the year. year. The infrastructure division generated sales of 167.2 billion yuan ($23.2 billion), while consumer sales amounted to 103.5 billion yuan ($14.3 billion). The fledgling auto division, which provides networking and other technology for electric cars, had sales of 1 billion yuan ($138.6 billion).

Huawei has faced challenges since former US President Donald Trump cut off its access to US processor chips and other technologies, citing national security concerns and allegations of complicity in the Chinese espionage. Nevertheless, Huawei remains the world’s largest supplier of network equipment for telephone and internet companies. In 2020, the company sold its Honor brand of smartphones at low prices, but continues to sell devices under its own Huawei brand, with particular emphasis on the Chinese market.

Despite hurdles, Huawei reported profit of 35.6 billion yuan ($5.2 billion) in 2022, down 70% from a year earlier, while sales rose 0.9 % to reach 642.3 billion yuan ($93.5 billion). The company, which has 207,000 employees, has prioritized research and development, striving to develop alternatives to American components. Huawei says it has made significant progress in creating its own design tools for processor chips.

Overall, Huawei’s financial results for the first half of 2023 demonstrate its resilience and strategic adaptation in the face of ongoing US sanctions.