In an internal new-year message obtained by Reuters, Huawei Technologies’ rotating chairman Ken Hu revealed optimistic projections for the tech giant, anticipating revenue to surpass 700 billion yuan ($98.5 billion) in 2023.
This forecast indicates a promising 9% year-over-year increase from the 642.3 billion yuan reported in 2022.
Huawei’s announcement serves as a testament to the company’s resilience and recovery following substantial setbacks induced by US sanctions that commenced in 2019.
These sanctions severely impacted Huawei’s operations by restricting access to critical global technologies, particularly advanced chips.
Ken Hu expressed gratitude towards the company’s partners across the value chain, acknowledging their unwavering support during challenging times.
He commended Huawei’s workforce for their resilience, stating, “After years of hard work, we’ve managed to weather the storm. And now we’re pretty much back on track.”
Within the internal message, Hu highlighted the positive performance of Huawei’s device business segment, encompassing its smartphone division, which outperformed initial expectations in 2023.
Huawei’s recovery reached a significant milestone with the August launch of its Mate60 series of smartphones, which were speculated to be powered by domestically developed chipsets.
Huawei’s Resurgence in High-End Smartphone Market
This release marked Huawei’s resurgence in the high-end smartphone market after grappling with years of adversity due to US sanctions.
The surge in Huawei’s smartphone shipments, witnessing an 83% year-on-year increase in October, significantly contributed to an overall 11% growth in the Chinese smartphone market, as reported by Counterpoint.
Looking ahead to 2024, Huawei emphasized the device business as a focal point for expansion, stressing the commitment to develop top-tier products and cultivate a high-end brand with a human touch.
However, amidst the positive forecast, Huawei acknowledged substantial challenges looming on the horizon.
Ken Hu pointed out the prevalence of geopolitical and economic uncertainties, coupled with persistent technology restrictions and trade barriers, that continue to influence the global landscape.
To navigate these challenges, Huawei intends to enhance the efficiency of its business operations.
Hu outlined initiatives aimed at streamlining headquarters, simplifying management processes, and ensuring consistent policies while remaining adaptable to necessary adjustments.
Despite the hurdles, Huawei’s optimistic revenue forecast for 2023 underscores its resurgence and strategic approach to surmounting obstacles in an ever-evolving technological and geopolitical landscape.
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