Huawei generated revenues of CNY456.6 billion ($62.5 billion) in the first three quarters of the year
Chinese vendor Huawei generated revenues of CNY456.6 billion ($62.5 billion) in the first three quarters of the year, climbing 2.4% year-on-year.
“The company’s performance is in line with forecast,” said Ken Hu, Huawei’s rotating chairman. “Moving forward, we will continue to increase our investment in R&D to make the most of our business portfolio and take the competitiveness of our products and services to new heights. As always, our goal is to create greater value for our customers, partners, and society.”
The vendor highlighted that its consumer business achieved revenue growth during the period, without providing specific figures. It added that its digital power and cloud businesses both experienced strong growth during the January to September period.
In a release, Huawei also said it recorded a net profit margin of 16% during the period, compared with 6.1% in the same period last year.
“There are two main reasons for this. First, we continue to optimize our management systems, improve the efficiency and quality of our operations, and refine our sales strategy and product mix. These actions have had a very positive impact on our profit margin. Second, in the first three quarters of 2023, we recorded partial gains from the sale of certain businesses,” Huawei said.
“5G has become a new growth engine for mobile operators in the consumer market. For leading mobile operators around the world, 5G now accounts for the majority of network traffic. In particular, video-based applications are changing consumption habits, driving a three- to five-fold increase in network traffic and 10%–25% average increase in ARPU. 5G has also helped mobile communications networks expand into the vertical industry market – one of its biggest differences with 4G,” Hu said during his keynote presentation at MBBF 2023, which took place in Dubai earlier this month.
“Currently, there are more than 50,000 industrial 5G applications worldwide, and more than 10 million 5G connections in industrial settings. Over the past four years, we’ve identified key scenarios for industrial applications, like remote control, video backhaul, machine vision, and positioning, where we can maximize the value of 5G. We have also identified industries like mining, ports, and manufacturing where we can scale up 5G capabilities.”
During MBBF, Li Peng, Huawei’s corporate senior vice president and president of the vendor’s carrier business group, called on global carriers and industry to start working for the provision of future services, which will be provided by 5G-Advanced.
“We are already on the right path towards 5G business success, and 5G-Advanced is the natural next step in 5G’s evolution,” Li said.
According to Li, future mobile networks need to have six key features: 10 Gbps downlink, 1 Gbps uplink, deterministic networking, support for a hundred-billion IoT connections, integrated sensing and communication and native AI capabilities. He noted that operators and industry players not only need to continuously enhance their capabilities in three core usage scenarios — enhanced mobile broadband (eMBB), massive machine-type communications (mMTC) and ultra-reliable low-latency communication (URLLC) — but also to develop new capabilities, including Uplink Centric Broadband Communication (UCBC) and Real-Time Broadband Communication (RTBC).
