Huawei Technologies Co.’s revenue grew for the sixth straight quarter as its smartphones gained significant market share in China. Net profit climbed 18% in the first half of the year, thanks to strong smartphone sales and robust growth in its car business. Huawei reports a handful of unaudited financial figures throughout the year and releases a more detailed audited annual report each spring. It didn’t provide data broken down by business segment for the first half.
The Chinese networking and electronics behemoth posted revenue of 239 billion yuan ($33.6 billion) in the June quarter, up 33.7% from a year earlier, according to calculations based on the company’s six-month financial figures. Implied net profit was 35.5 billion yuan, a drop of 18.6% from a year ago when Huawei recorded one-time gains from divestments. The company sold mobile maker Honor Device Co. to a consortium in 2020 and parts of its server business in 2021, with proceeds from both paid out in installments.
The Shenzhen-based company’s smartphone shipments rose by 50% last quarter as it and other local players like Vivo and Xiaomi Corp. beat out Apple, which dropped to sixth place among handset makers in China, according to market tracker IDC. Apple’s sales in China fell 6.5% in the June quarter, missing Wall Street projections, even as overall shipments in China grew.
Huawei’s next flagship Mate 70 will be closely watched for any processor upgrades when the device is introduced later this year. The Mate 60 roiled US policymakers when it debuted a China-made 7-nanometer chip a year ago, despite US-imposed sanctions and export controls geared to stem advances in China’s chip technologies.
Last year, Huawei more than doubled its net profit as it rebuilt the market share of its core businesses in consumer electronics and cloud computing, which were severely eroded by several years of U.S. sanctions that limited its access to advanced semiconductors.
In the second quarter, Huawei was the No. 2 smartphone seller in China, the world’s largest smartphone market, with an 18.1% market share, according to market-research firm International Data Corp. Counterpoint Research said Huawei’s sales jumped 44.5% in the quarter from a year earlier, the fastest growth among Chinese original equipment manufacturers, thanks to the Pura 70 and Nova 12 series. The company launched its Pura 70 series in April.
Huawei and other local smartphone makers like Vivo and Xiaomi Corp. beat out Apple, which dropped to sixth place among handset makers in China, according to market tracker IDC.
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Huawei has invested in its car business as Beijing ramps up support for high-tech industries as part of efforts to reduce the economy’s reliance on the property sector for growth.
The company’s automotive unit, which offers self-driving technology to electric vehicle makers, earned a revenue of 10 billion yuan as of early July, according to a report by a Chinese media outlet, more than the combined revenue in the previous two years. Huawei didn’t provide a breakdown of its sales.
Changan Automobile-backed Avatr Technology said in an exchange filing last week that it will acquire a 10% stake in Yinwang Smart Technology, Huawei’s car unit that provides autonomous-driving technology to automakers, valuing the company at 115 billion yuan. Seres on Monday said it will acquire a 10% stake in Yinwang.
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References:
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