Huawei's Profits More Than Double in 2023 Due to Growth in Cloud and Digital Businesses

Chinese telecommunications equipment company Huawei Technologies has reported that its profit more than doubled in 2023 as its cloud and digital businesses thrived despite ongoing U.S. sanctions. 

Headquartered in Shenzhen, the company reported a net profit of 87 billion yuan ($12 billion), aided by strong sales and an improved product portfolio. Revenue increased nearly 10% year-over-year to 704.2 billion yuan ($97.4 billion).

Ken Hu, Huawei's rotating chairman, stated the company's financial figures were in line with forecasts. "We've overcome many challenges in recent years. Through persevering through one challenge after another, we've achieved continued growth," Hu said. 

Huawei also cited "gains from the sales of some businesses" but did not specify which entities were divested.

 As one of China's earliest global technology brands, Huawei has been impacted by China-U.S. tensions concerning technology and security. The U.S. banned companies from conducting business with Huawei and restricted its access to computer chips and software, impeding its ability to sell telecommunications equipment to U.S. customers. Washington asserts Huawei poses national security risks, which Huawei denies.

Huawei has refocused on cloud computing services and helping industries undergo digital transformation. Revenues from its cloud business grew almost 22% year-over-year in 2023 to 55.3 billion yuan ($7.7 billion). Sales for its digital power business increased 3.5%, and automotive services revenue more than doubled. Huawei's consumer unit, selling smartphones and other devices, reported a 17.3% jump in 2023 revenue.