The Shenzhen-based tech giant announced on Friday that revenue rose to 310.9 billion yuan from the same period last year. The equivalent of about 37.6 billion Swiss francs. Huawei said net profit margin was 15.0%, resulting in a profit of 46.6 billion yuan.
The US government imposed sanctions on Huawei in 2019 under then-President Donald Trump, which were not withdrawn by Joe Biden’s government either. As a result, Huawei, for example, cannot use chipsets in its smartphones that support the modern 5G mobile communications standard.
Huawei smartphones also do not have Google system services, which is a handicap, at least in Western markets. The US justifies the sanctions with concerns about national security because the network supplier and smartphone provider may be cooperating with Chinese authorities and the military. Huawei has always denied these allegations.
In Western countries like Germany, before the sanctions were imposed, Huawei was poised to challenge Apple and Samsung for the top spot as the most successful smartphone manufacturers. Since then, Samsung in particular has taken advantage of the fact that Huawei smartphones cannot provide 5G connectivity. In China itself, Huawei devices are still popular even without 5G.
Huawei is also under pressure in the West in its 5G infrastructure business, with the US and European Commission pushing telecoms groups such as Vodafone, Telecom and Telefonica to dump technology from Huawei and China’s ZTE group. However, Huawei has been able to offset this trend with sales successes in Africa, Asia and Latin America. The ICT infrastructure business as a whole contributed 167.2 billion yuan (20 billion Swiss francs) to revenue.
Sabrina Meng, acting president of Huawei, said the company has invested heavily in enabling technologies to take advantage of trends in digitization, intelligence and decarbonisation. “In the first half of 2023, our ICT infrastructure business remained strong and our consumer business delivered growth.” The digital power and cloud business has experienced strong growth.
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