Huawei's Business Comes Out Of The Woods, Chair Eric Xu Says

Huawei Technologies Co said it had exited "crisis mode" following Trump-era sanctions, as it reported growth in its telecom-infrastructure business and flat overall revenue for 2022.
Rotating Chair Eric Xu said Huawei expects to end the year with annual revenue of 636.9 billion yuan, or about $91.5 billion, which is essentially flat year-on-year, the Wall Street Journal reports.
Huawei's third-quarter sales rose 7.2% to 191 billion yuan ($27.4 billion) after carving out new income streams from areas like smart cars and cloud services.
The 2022 sales stood at 636.9 billion yuan, up marginally from a year earlier, Bloomberg reports.
Xu said Huawei's core business of selling telecom infrastructure grew in 2022, and the decline in the company's once-dominant consumer device business has stabilized.
"In 2022, we successfully pulled ourselves out of crisis mode. U.S. restrictions are now our new normal, and we're back to business as usual," Xu said. "
The macro environment may be rife with uncertainty, but what we can be certain about is that digitalization and decarbonization are the way forward, and they're where future opportunities lie."
The U.S. cut Huawei from advanced chips, crushing its smartphone business. The U.S. has also provoked allies to ban the use of its 5G telecom equipment, calling it a national-security threat.
Lately, Huawei has sought to develop new business lines, including software, cloud computing, and technology for automobiles. It has invested in companies across China's semiconductor industry.
Still, annual sales remain well below the 2020 peak of more than $120 billion.
Before the U.S. imposed sanctions, it churned out smartphones competing with market leaders like Apple Inc AAPL and Samsung Electronics Co Ltd SSNLF.
Xu said 2023 would be a crucial year.
Photo via Wikimedia Commons

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