Huawei Profits Rise on Acquisitions of Apple and Alibaba: Huawei Technologies Co. continues its trend of strong quarterly profit growth,
based on recovering its consumer business from Apple Inc.’s iPhone
and creating its cloud division in conjunction with Alibaba Group Holding.
Topics
Chinese Government Pressure on Apple
Huawei Profits
According to Bloomberg calculations based on financial data, the networking and electronics leader
posted a net profit of about 13.9 billion yuan ($1.9 billion) in the December quarter.
This represents an increase of more than 65% compared to last year’s figure of 8.4 billion yuan.
The results underscore the progress made by Huawei,
which has been subject to US sanctions and export controls for years,
in addressing these challenges.
In August, the company introduced its flagship Mate 60 smartphone series,
which features a domestically designed and manufactured seven-nanometer processor,
triggering a wave of nationalistic popularity in the country.
In 2023, the consumer electronics division grew by 17.3%, reaching a revenue of 251.5 billion yuan.
Company Development
Huawei, which virtually disappeared from the smartphone and chip market after the US cut ties with foreign suppliers in 2019,
is now emerging as a symbol of China’s determination to counter US restrictions.
The company is building a network of chip factories to support its long-term
ambitions in electric vehicles and artificial intelligence (AI).
The company’s cloud computing business grew nearly 22% year-on-year,
marking further progress in competition with Alibaba and Tencent Holdings in the home market.
This month, the company deployed an AI-based weather forecast model at its hometown Shenzhen Meteorological Office.
The company’s chips also appear in Chinese AI manufacturers’ systems,
such as the one the Hong Kong Center for Artificial Intelligence and Robotics uses to train AI assistants for neurosurgeons.
Automotive Technology
Although Huawei hasn’t come as far as Xiaomi,
which launched its own brand of electric vehicles for the first time this week.
The Shenzhen-based company is making strides in bringing technology to the automotive sector.
In 2023, the industry grew by 128%, and Huawei offered Aito vehicles in its stores in China.
Chinese Government Pressure on Apple
The return of Huawei coincides with growing pressure on Apple from the Chinese government,
which is increasingly mandating encouraging the use of domestic devices and technologies across a wide range
of industries and sectors, including public companies.
The popularity of the Mate 60 has also fueled consumer enthusiasm for local brands.
According to official data, sales of iPhones in China fell about 33% in February from a year earlier,
exacerbating falling demand for the flagship device in the largest overseas market. However, Huawei
warned in December about the risks posed by an unstable global industry and economy in 2024.
In the wake of the 7nm technological breakthrough, Washington officials are considering various responses,
ranging from blackmailing Huawei’s suppliers to using allies to bolster the existing semiconductor technology bloc.
Huawei Profits Rise on Acquisitions of Apple and Alibaba
