Chinese Firm Huawei’s Revenue in Q1 2023 Exceeds CNY 132.1 Bn, Up 0.8% YoY

Technology Author: Zhisheng Wang, Yiran Xing Editor: Yiran Xing May 04, 2023 04:02 PM (GMT+8)

Huawei, one of the leading companies in the ICT and smartphone industry, reported a 0.80% year-on-year increase in revenue and a 46% year-on-year decline in net income in the first quarter of 2023. Huawei's R&D spending in 2022 reached an all-time high, accounting for 25.1% of the company's annual revenue.


Huawei (Chinese: 华为), a Chinese company specializing in the ICT and smartphone, has reached a revenue of CNY 132.1 billion (USD 19.11 billion) in Q1 2023, an increase of 0.80% from the same period last year, with a net profit margin of 2.30%, the lowest level in the past five years. The company's revenue in 2022 was CNY 642.3 billion, up 0.9% over the previous year; net profit was CNY 35.6 billion, down 68.7% year-on-year.

Founded in 1987, Huawei is one of the leading giants in the ICT and smartphone industry. Its product line includes smartphones, computers, tablets, audio equipment, and smartwatches. The company exports to over 170 countries and regions, serving more than 3 billion people worldwide.

Increase in the smartphone market share

According to global technology market research firm Counterpoint’s research, China's smartphone shipments in Q1 2023 totaled about 67.6 million units, down 11.8% year-on-year. OPPO led the market with an 18.3% share, followed by vivo, Honor, Xiaomi, and Huawei. Though Huawei's smartphone shipments fell out of the top five, its sales in Q1 2023 increased by a substantial 41% compared to that of last year, with a market share of 9.2%. This makes Huawei the fastest-growing smartphone manufacturer, indicating a clear resurgence this year.

Huawei indicates that the overall operating results are in line with expectations, and the company will continue to increase investment in R&D to maintain its ability to innovate for the future. This will create value for customers, partners, and society while achieving high-quality development in the long term.

The major competitors of Huawei in the smartphone market include Chinese companies such as OPPO, vivo, Honor (Chinese: 荣耀), and Xiaomi (Chinese: 小米), as well as international players such as Apple from the United States and Samsung from South Korea.

YoY increase in R&D investment

Huawei's annual report in 2022 revealed that the company continued to increase its R&D investment, reaching an all-time high of CNY 161.5 billion, accounting for 25.1% of its annual revenue. In 2021, the figures were CNY 142.7 billion and 22.4%, respectively, with a cumulative 10-year R&D expenditure exceeding CNY 977.3 billion.

In addition, Huawei's global workforce and the proportion of R&D employees increased in 2022. As of December 31, 2022, Huawei had approximately 207,000 employees, with R&D staff accounting for 55.4% (about 114,000), up 0.6% from 2021 and 2.0% from 2020.

Meng Wanzhou, Huawei's rotating chairperson, emphasized that "The true value of Huawei lies in the R&D capabilities we have accumulated through our constant, long-term investment in research. This is fundamental to Huawei's ability to establish long-term, and sustainable competitive advantage."