For the first half of this year, the Chinese electronics giant Huawei recorded a 2.2% increase in revenue over the same period last year. Due to China’s slower-than-anticipated economic recovery and the ongoing effects of U.S. sanctions that started in 2019, the growth has been moderate. The business activities of Huawei have been adversely impacted by these penalties. Less than half of what the category brought in over the same time period in 2019 and 2020 was made up of consumer revenue, which for the first half of 2023 totaled 103.5 billion yuan ($14.27 billion).
Compared to the company’s overall revenue growth of 3.1%, which totaled 310.9 billion yuan in the first half of this year, this growth rate of 2.2% is also slower. With 167.2 billion yuan in sales for the same time, Huawei’s ICT infrastructure business—which includes carrier and corporate services—contributed the most to total revenue.
In the first half of 2023, cloud services earned 24.1 billion yuan in income, while intelligent automotive solutions, which include technology for new energy cars, brought in 1 billion yuan. In the consumer market, Huawei has an electric car brand called Aito that says it has partnered to create 100,000 cars in 15 months.
Huawei announced a huge rise in its net profit margin, which rose from 5% to 15% in the first half of the year. Without going into greater detail, the corporation ascribed this increase to superior management practices and profits from the sale of certain companies.
As part of its attempts to commercialize artificial intelligence, Huawei unveiled an AI model in July that aims to improve mining operations’ productivity and safety. The entire revenue increase in the second quarter was 4.8% year over year to 178.8 billion yuan, which was the quickest rate since the fourth quarter of 2022.
Despite obstacles in the smartphone industry, Huawei expects its major consumer goods to resume a “normal” timetable this year. The amount of such delays was not specifically disclosed by the firm.