Over 700 billion!Why does Huawei achieve sustained growth?

Mondo Finance Updated on 2024-01-31

According to Huawei's official WeChat, Huawei's rotating chairman Ken Hu announced an exciting news in his 2024 New Year's address:Huawei expects to achieve sales revenue of more than 700 billion yuan in 2023. Compared to 642.3 billion yuan in 2022, Huawei continues to achieve growth in a difficult environment this year。Against the backdrop of a sluggish global economic recoveryHow was Huawei able to achieve such outstanding performance in the face of adversity?This article will demystify Huawei's growth from four aspects.

First of all,Continue to innovate and invest in R&D to a new high

Huawei has always attached great importance to R&D and innovation, which is the key to maintaining its leading position in a highly competitive market. According to Huawei's 2022 annual report, the company's total R&D expenses were 161.5 billion yuan, with a R&D expense ratio of 251%。Huawei's R&D expenses in the first three quarters of 2023 were 1,1499.1 billion yuan, an increase of 44 percent year-on-year1 billion yuan, accounting for 25 percent of the revenue in the first three quarters4%。Huawei's continuous R&D investment has not only given Huawei a technological lead, but also opened up new markets and business areas. In the future, with the rapid development of emerging technologies such as 5G, cloud computing, and artificial intelligence, Huawei's R&D advantages will become more obvious.

Secondly,The mobile phone and automobile business was better than expected.

Despite the impact of unfavorable factors such as the global chip shortage, Huawei's device business still shows a strong growth momentum in 2023. This is mainly due to Huawei's continuous efforts in product design, technological innovation, and brand buildingHuawei mobile phones and Huawei cars have achieved unexpected growth, and Huawei Mate60Pro and Wenjie new M7 have detonated the entire technology circleWith its excellent product quality and brand influence, Huawei has successfully attracted a large number of loyal users and further enhanced its market competitiveness.

Again,The main communication business continued to grow steadily.

With the advent of the digital and intelligent era, the demand for communication in the global market continues to grow. With its deep technology accumulation and market insight, Huawei has successfully seized this market opportunity. In China, Europe, Southeast Asia, etc., Huawei continues to consolidate its market.

Finally,HarmonyOS system, HUAWEI CLOUD and other rapid development.

Huawei's HarmonyOS system has welcomed more performance partners, and its application scope has been continuously expanded, and HUAWEI CLOUD has also continued to advance.

To sum up, Xiaocai thinksIn 2023, Huawei achieved a sales revenue of more than 700 billion yuan, thanks to its continuous innovation, new high R&D investment, better than expected mobile phone and automotive businesses, steady growth of the main communications business, and the rapid development of HarmonyOS and HUAWEI CLOUD. With its strong technical strength and market insight, Huawei has successfully seized market opportunities and achieved growth against the trend.

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