Chinese technology giant Huawei reported third-quarter revenue results showing a modest 1% increase compared to the same period last year. Despite being under U.S. sanctions since 2019, the company managed to achieve steady revenue growth for the first three quarters of the year, marking a 2.4% increase year-on-year, with total revenue reaching 456.6 billion yuan ($62.33 billion) – the highest for this timeframe since 2020.
This growth is particularly notable given the limitations Huawei faces in accessing advanced technology due to the imposed restrictions. However, the introduction of the new Mate 60 Pro smartphone was a key contributor to Huawei’s revenue stability, offering impressive download speeds associated with 5G, thanks to its advanced semiconductor chip. The company quietly released this phone in late August, with limited details shared during a product launch event in late September.
In the first six weeks of sales, more than 1.6 million Mate 60 series devices were sold, with approximately 75% of them being the Pro models, amounting to roughly 1.2 million units sold. In comparison, Apple’s iPhone 15, launched in September, is projected to achieve 10 million sales in China this year, totaling an expected 45.5 million iPhone sales in the country.
While Apple experienced a 10% decline in smartphone sales in the third quarter compared to the previous year, Huawei’s smartphone sales soared by 37%, as reported by Counterpoint Research.
In addition to its smartphone success, Huawei has made significant strides in China’s rapidly expanding new energy vehicle market, encompassing hybrid and electric cars. The company offers its operating system and components for driver-assist technology to car manufacturers. Notably, Huawei launched its own car brand, Aito, in collaboration with manufacturer Seres in December 2021. Aito’s latest model, the M7, received over 60,000 orders within approximately a month of its release, and pre-orders for the upcoming M9 SUV have already exceeded 15,000.
Although Huawei is not publicly traded and did not provide a breakdown of revenue by business segment in its latest update, the company reported an increased net profit margin of 16% for the first three quarters of the year, up from 15% in the first half of the year. This improvement came alongside a 3.1% revenue growth, reaching 310.9 billion yuan.
Despite challenges and sanctions, Huawei has maintained its commitment to expanding its patent licensing business. In the third quarter, the company secured deals with Xiaomi and Ericsson, primarily covering 5G connectivity. Huawei has also been actively advancing in international markets, extending its cloud business to Saudi Arabia in September and opening a research lab in Finland to test health and fitness wearables.
The U.S. government has consistently raised concerns about Huawei’s national security risks due to alleged links to the Chinese Communist Party and the military. Huawei has vehemently denied the existence of any such risk.