Huawei says it’s out of ‘crisis mode’ as annual revenue stabilizes

HONG KONG—Huawei Technologies Co. said it had emerged from “crisis mode” following U.S. sanctions, as it reported growth in its telecommunications infrastructure business and stable overall revenue for 2022 .

“U.S. restrictions are now our new normal, and we’re back to business as usual,” Eric Xu, Huawei’s current chairman, said in a New Year’s message to employees.

Xu said Huawei expects to end the year with annual revenue of 636.9 billion yuan, or about $91.5 billion, which is essentially unchanged from the year. former.

Xu said Huawei’s core business of selling telecommunications infrastructure grew in 2022 and the decline in the company’s once-dominant consumer device business leveled off. The privately held Chinese company did not release annual earnings figures or provide a full breakdown of its business segments.

The results are the latest sign the Shenzhen-based tech giant has stabilized its business after a series of Trump-era sanctions cut it off from advanced chips, crushing its smartphone business, briefly the largest in the world. world.

The United States has also urged allies not to use the company’s 5G telecommunications equipment, calling it a national security threat, which Huawei has denied.. In recent years, Huawei has sought to develop new business areas, including software, cloud computing and automotive technology. It has invested in companies in China’s semiconductor industry as it seeks to become more independent of foreign supply chains.

Still, annual sales remain well below the 2020 peak of more than $120 billion, indicating new ventures are still far from making up for its recent business losses.

Before the United States imposed sanctions, the Chinese tech champion regularly posted double-digit annual revenue growth, churning out smartphones that rivaled those of market leaders like Apple. Inc.

and Samsung Electronics Co.

and has made steady inroads into Western telecommunications markets.

Recent financial information suggests that the company’s revenue growth has started to accelerate this year. Fourth-quarter revenue rose 5.5% from a year earlier to 191.1 billion yuan, after growing 6.5% in the third quarter.

Xu said 2023 would be a critical year and business priorities include maintaining high investment in research and development, maintaining quality despite US restrictions, and finding new telecommunications equipment opportunities. .

Write to Dan Strumpf at [email protected]

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