Chinese tech giant Huawei reported a 2.2% year-on-year growth in its consumer business revenue for the first half of 2023. This modest expansion comes amidst China’s slower economic rebound and ongoing U.S. sanctions, which have constrained Huawei’s performance. The consumer segment generated 103.5 billion yuan ($14.27 billion) during this period, less than half of what it had achieved in the same timeframe in 2019 and 2020. However, this growth rate was slower than the company’s overall revenue increase of 3.1% to 310.9 billion yuan.

Huawei’s ICT infrastructure business contributed the most to its revenue, totaling 167.2 billion yuan, while cloud services and intelligent automotive solutions generated 24.1 billion yuan and 1 billion yuan, respectively. The company’s net profit margin saw a substantial improvement from 5% to 15%, attributed to enhanced management systems and gains from certain business sales.

Despite the challenging landscape, Huawei continued to innovate, launching an AI model aimed at enhancing safety and efficiency in mining operations. The second-quarter revenue also grew by 4.8% year-on-year to 178.8 billion yuan.

Looking forward, Huawei aims to revive smartphone growth through flagship product launches, with its P60 smartphone, Mate X3 foldable, and Watch Ultimate wearable contributing to the first-half consumer revenue growth. The company acknowledges the uncertainties in the global markets but expresses confidence in meeting annual business targets and creating value for customers and society.

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