Huawei Technologies Co. posted its third consecutive quarter of growth and announced a return to normal after overcoming numerous US restrictions this year.
The company’s revenue rose 7.2 percent to 191 billion yuan (about 2,27,820 billion rupees) in the December quarter, according to Bloomberg calculations using the full-year figures, after finding new revenue streams in areas such as smart cars and cloud services . Revenue in 2022 was CNY 636.9 billion (about Rs. 7,59,520 crore), the Shenzhen-based company said, a slight year-on-year increase.
Huawei seeks to open up new markets and deals after US tech export restrictions shut down its smartphone business – briefly the world’s largest – and restricted sales of advanced equipment in developed markets. Those trade restrictions include a ban on contract chipmakers from manufacturing Huawei-designed semiconductors, effectively bringing the company’s HiSilicon design business to its knees.
Rotating chairman Eric This reversal has raised concerns about the impact on the economy of a subsequent surge in infections.
But Xu said the longer-term demand for technology remains intact. He didn’t provide details on how the company might overcome export restrictions, but Huawei has spent much of the past three years developing, researching, and sourcing alternatives to American components.
“In 2022 we were able to successfully break out of crisis mode. “US restrictions are now our new normal and we’re going back to business as usual,” Xu said. “The macroeconomic environment may be fraught with uncertainty, but we can be assured that digitization and decarbonization are the way forward and future opportunities lie within.”
Huawei also looked for alternative revenue streams by selling patents, technology services, and wireless devices to new customers, ranging from automakers to coal mines and industrial parks. It started collecting royalties from the world’s biggest smartphone brands, including Apple And Samsung.
According to Alan Fan, the company’s global head of IP, the Chinese company has signed more than 20 patent license deals this year, covering smartphones, connected cars, networking and the Internet of Things.
“We managed to stay afloat because we fought together and united,” Xu wrote. “2023 will be the first year we return to day-to-day operations while external restrictions remain in place.”
© 2022 Bloomberg LP
