TECH NEWS – The Chinese tech company says net profits have at least doubled in each of its divisions, but the Chinese Communist Party’s (CCP) crackdown on Apple is likely a factor, with many people opting for Huawei phones instead…

In 2023, Huawei more than doubled its net profit, despite the US continuing to erect trade barriers against the company, which is apparently as tied to the CCP as TikTok owner ByteDance. According to the Nikkei, Huawei made a net profit of 87 billion yuan ($12 billion!) in 2023, which was the highest result for them in the past five years, excluding 2021 (and even then Huawei achieved this because they spun off the Honor brand). Their consumer electronics sector grew 17.3% to 251.5 billion yuan ($38.69 billion), and their momentum seems unstoppable.

Not surprisingly, Apple, which has been struggling in China lately, had to resort to price cuts in the country, but still managed to achieve a market decline of more than 10% there. According to Canalys analyst Runar Bjorhovde, the Huawei boom is forcing Apple to invest more in China (and that’s why CEO Tim Cook showed up there to open one of the world’s largest Apple stores): “Apple is feeling the heat of Huawei’s resurgence the most. Recently, Apple has responded with increased investment in China, including significant spending on co-marketing campaigns, a new Apple Store, and a visit by CEO Tim Cook, all initiatives designed to solidify its position in the market.”

The company’s cash flow increased by 9.6% from 2022 to 2023 ($108.32 billion), but research and development costs also reached a record high ($23.18 billion), accounting for about 23% of Huawei’s revenue. No wonder the Chinese tech giant is aiming to raise the bar this year, with 100 million smartphones on the market and perhaps the first chipset with a 5-nanometer manufacturing process, courtesy of its manufacturing partner SMIC.

These are strong accomplishments.

Source: WCCFTech, Nikkei