- 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
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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