Science & Technology

Huawei’s Profit Doubles

According to the results of the last quarter, the profit indicator of Huawei Technologies Co. showed more than a twofold increase.

Huawei’s Profit Doubles

To a certain extent, this result is natural, since about two months ago the mentioned company demonstrated a significant achievement in the sphere of chip production. which has become a kind of signal that business in the Chinese technology sector is stabilizing and has positive prospects for the future, despite the measures imposed by Washington.

The American leadership has restricted the access of firms from the mentioned Asian country to advanced microcircuits. But Beijing has shown more resilience than expected.

According to the results of the third quarter of this year, Huawei’s net profit amounted to 26.4 billion yuan ($3.6 billion). This indicator is 118% higher than the result for the same period last year. The volume of sales of devices from this manufacturer in the first nine months of 2023 in monetary terms was fixed at the level of 145.7 billion yuan ($19.9 billion).

The positive result for the third quarter is largely due to the success of the company’s new smartphone called Mate 60 Pro. Deliveries of this device began two months ago. The specified important achievement in the sphere of manufacturing microcircuits is that the new smartphone was equipped with a 7-nanometer processor made by Semiconductor Manufacturing International Corp. This fact marked China’s progress in chip production, which refuted Washington’s expectations about the ability of American restrictive measures to stop or significantly slow down the development of the Asian country’s technology sector. Some experts even declared the collapse of the attempts of the United States to restrain the development of Beijing.

On the eve of the debut of the Mate 60 Pro, Huawei managed to increase margins. This result was achieved thanks to cost-cutting measures. The company also reported one-off profits from sales of Honor smartphones and the server unit in 2020 and 2021.

Huawei’s official statement contains information about the manufacturer’s intention to continue working on optimizing control systems. The company also strives to increase the level of efficiency of its operations and improve the quality of these processes. Another priority of the manufacturer for the foreseeable future is the modernization of the sales strategy. The company’s product range, according to its plans, will increase.

Huawei, which, according to experts, is currently on the path of revival, is a serious competitor not only for Apple but also for Chinese brands, including Xiaomi, Oppo, and Vivo, who are fighting for their share in a shrinking market.

Data from the research company IDC, indicate that the volume of shipments of smartphones, the production of which is carried out in China, decreased by 6.3% year-on-year in the third quarter. At the same time, some experts believe that the market may have reached the peak of a negative trend, which means that this commercial space will soon be restored. IDC analyst Will Wong predicts that the Chinese market will show growth in the fourth quarter for the first time after more than a two-year break. The expert also noted that the positive trend will be provided by factors such as intense competition and a low comparison base.

As we have reported earlier, Expert Says About Futility of US Attempts to Stop Huawei’s Technical Progress.

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.