Huawei says business is back to normal after overcoming several US restrictions
Huawei Technologies Co. recorded its third consecutive quarter of growth, declaring a return to normal after overcoming a plethora of US restrictions this year.
The company’s sales rose 7.2% to 191 billion yuan (about Rs 2,27,820 crore) in the December quarter, according to Bloomberg’s calculations of annual figures, after reporting sources of revenue in areas such as smart cars and cloud services. Sales in 2022 amounted to 636.9 billion yuan (about 7.59520 crore rupees), the Shenzhen-based company said, up slightly from a year earlier.
Huawei is trying to open up new markets and businesses after US tech export restrictions emptied its smartphone business – briefly the world’s largest – and reduced the sale of advanced equipment in developed markets . Among these trade restrictions is the ban on contract chipmakers from producing Huawei-designed semiconductors, which has the effect of limiting its HiSilicon design business.
Rotating chairman Eric Xu warned in an annual New Year’s message to employees of macroeconomic uncertainty in 2023, although he made no mention of China’s abrupt reversal of Covid policy. The about-face has raised concerns about the fallout on economies from a subsequent spike in infections.
But Xu said longer-term technology demand remains intact. He didn’t say how the company could overcome export restrictions, but Huawei has spent much of the last three years developing, researching and finding alternatives to US components.
“In 2022, we managed to get out of crisis mode. US restrictions are now our new normal, and we are back to business as usual,” Xu said. “The macro environment may be filled with uncertainties, but what we can be certain of is that digitalization and decarbonization is the way forward, and that’s where the future opportunities lie.”
Huawei has also sought other sources of revenue by selling patents, technology services and wireless equipment to new customers, from automakers to coal mines and industrial parks. It started collecting royalties from the biggest smartphone brands in the world, including Apple and Samsung.
The Chinese company has signed more than 20 patent licensing deals this year, spanning smartphones, connected vehicles, networking and the Internet of Things, according to Alan Fan, the company’s global head of intellectual property.
“We managed to keep our heads above water because we fought together, united as one,” Xu wrote. “2023 will be the first year that we resume business as usual with external restrictions still in place.”
© 2022 Bloomberg L.P.
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