Huawei profit fell by 69% in 2022
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Huawei provided financial report for 2022, from which it follows that the profit of the Chinese developer amounted to 35.6 billion yuan ($5.11 billion). Thus, compared to 2021, the company’s net profit decreased immediately by 68.7%. This is the biggest drop in Huawei’s annual profit since 2011.
Prolonged lockdowns in China, which slowed down production, as well as rising raw material prices and increased research costs, were the main reasons for the drop in profits. In addition, in 2021, Huawei received one-time proceeds from the sale of Honor to a consortium of 30 dealers and agents. The amount of that deal was not disclosed.
In 2022, Huawei spent 161.5 billion yuan on research and development, a quarter of the company’s revenue. In percentage terms, this is one of the highest rates among all global smartphone manufacturers. The Chinese company, obviously, is forced to spend impressive amounts on its own developments, since access to American components and software is closed to Huawei.
The Chinese smartphone maker’s revenue rose a modest 0.9% to 642.3 billion yuan. However, this result is much better than in 2021, when the company’s sales fell by 28% at once.
About the situation with Huawei in Russia – in the material “Kommersant” “Huawei acted uncorporately”.
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