Huawei reports 1% YoY revenue growth in 3Q-2023; smartphone sales increase in China

Huawei reported a flat third quarter, with sales of 145.7 billion Chinese yuan ($19.9 billion), up just 1% over last year and a net profit margin of 16.0%. The Shenzhen based telecom equipment and mobile phone vendor said the profit margin had been boosted by the latest tranche from the sale of the Honor handset assets three years ago. It said improved efficiencies and optimized sales and product strategies had also had a positive impact on profitability.

“The company’s performance is in line with forecast,” said Ken Hu, Huawei’s Rotating Chairman. “I’d like to thank our customers and partners for their ongoing trust and support. Moving forward, we will continue to increase our investment in R&D to make the most of our business portfolio and take the competitiveness of our products and services to new heights. As always, our goal is to create greater value for our customers, partners, and society.”

Huawei reported growth in the consumer business unit and “strong growth” in the new digital power and cloud businesses, but the company was silent on its carrier equipment unit, its largest, suggesting it has also been hit by the decline in operator spending.

Huawei smartphone summary:

Huawei was the fastest-growing smartphone maker in China in the third quarter after the company released a smartphone with a surprisingly advanced chip inside.

In September, Huawei launched the Mate 60 Pro in China. It’s equipped with an advanced chip and 5G connectivity, technology that U.S. sanctions had been designed to stop Huawei getting its hands on.
The success of that device helped Huawei’s smartphone sales in China grow 37% year on year, according to a report from Counterpoint Research.
Sales of Honor, the largest smartphone maker by market share, rose just 3% year on year. Vivo, Oppo and Apple all saw double-digit declines, according to Counterpoint Research.