Huawei's annual sales, which fell into a serious crisis due to US government regulations, increased slightly year-on-year and declared 'out of crisis'

by Kārlis Dambrāns

The US government has long regulated Huawei , a major Chinese technology company, as a ``national security threat ''. Huawei's business was hit hard by regulations, but it is reported that sales in 2022 increased slightly year-on-year and bottomed out.

Huawei Says It Is Out of 'Crisis Mode' as Annual Revenue Stabilized - WSJ
https://www.wsj.com/articles/huawei-says-it-is-out-of-crisis-mode-as-annual-revenue-stabilized-11672375493

China's Huawei Declares 'Business as Usual' After Weathering US Curbs - Bloomberg
https://www.bloomberg.com/news/articles/2022-12-30/huawei-declares-business-as-usual-after-weathering-us-curbs

Huawei suffered a severe decline in sales in 2021, but sales in the third quarter of 2022 increased by 6.5% year-on-year to 144.2 billion yuan (about 2.8 trillion yen), the fourth quarter. In the quarter, we achieved sales of 191.1 billion yuan (about 3.7 trillion yen), up 5.5% year-on-year. As a result, annual sales in 2022 will increase by 0.4% year-on-year to 636.9 billion yuan (about 12.3 trillion yen), and Huawei believes that the decline in sales has stopped.

Before the US sanctions were strengthened, Huawei was putting a lot of effort into the smartphone business, and in 2019 boasted the world's second largest shipment volume, surpassing Apple. However, US sanctions have sapped sales of consumer devices, including smartphones, and Huawei's business has been hit hard.

Huawei surpasses Apple and grows rapidly to become the world's second largest smartphone vendor - GIGAZINE

In order to overcome this situation, Huawei has focused on developing new businesses such as software, cloud computing services, and smart car business, as well as selling a wide range of patents and technical services to secure alternative revenue sources. I was. According to Alan Fan, Huawei's global IP head, Huawei in 2022 has signed more than 20 patent licensing agreements in areas such as smartphones, smart cars, networks, and IoT. .

In his New Year's address, Huawei Chairman Eric Xu said, 'In 2022, we have successfully emerged from a crisis situation. American regulations are no longer our new normal. We are back to business as usual.' 'Although the macro environment is uncertain, it is clear that digitalization and decarbonization are the way forward for us and the opportunity for the future.'

In addition, Huawei's annual sales in 2020 were 891.4 billion yuan (about 17.2 trillion yen), and although sales in 2022 increased slightly compared to the previous year, they fell significantly compared to the peak. It is a situation that there is.