Chinese telecoms giant Huawei on Friday announced a pick-up in sales in the first half of 2023, the first increase since 2020, as the sanctions-battered firm works to diversify its business operations.
Huawei’s revenue rose 3.1% to 310.9 billion yuan ($43.3 billion) in the first six months of the year, compared to the same period last year. The company’s profit margin also widened to 15%, from 5% in the first half of 2022.
The increase in sales was driven by Huawei’s infrastructure business, which provides telecommunications equipment to carriers around the world. The company’s consumer business, which makes smartphones and other consumer electronics, also saw sales growth, but at a slower pace.
Huawei’s sales have been hit hard by US sanctions, which have restricted the company’s access to US components and technologies. In 2019, the US government added Huawei to a trade blacklist, effectively barring the company from doing business with American companies.
The sanctions have forced Huawei to diversify its business operations and focus on areas where it does not rely on US technology. The company has been investing heavily in research and development, and it is now a leading player in areas such as artificial intelligence, cloud computing, and 5G.
Huawei has also been working to build its own supply chain, and it is now producing some of its own components. The company is also looking to expand into new markets, such as Africa and Latin America.
The increase in sales is a positive sign for Huawei, but the company still faces significant challenges. The US sanctions are still in place, and it is unclear when they will be lifted. Huawei is also facing increasing competition from rivals such as Samsung and Apple.
However, Huawei is a resilient company, and it has shown that it is capable of adapting to changing circumstances. The company is well-positioned to weather the current challenges, and it is likely to continue to be a major player in the global tech industry for years to come.