Huawei chief Eric Xu says the company is easing out of crisis mode, just weeks after being hit by a further ban imposed by the US government.
In a New Year’s Message to the Chinese tech giant’s 195,000 employees, Xu put a very positive spin on its 2022 revenue, which remained flat, rising just 0.02% from 2021.
“US restrictions are now our new normal, and we’re back to business as usual,” Xu wrote in the letter addressed to staff and released to the media.
Revenue for the year is expected to be 636.9 billion yuan ($91.53 billion), according to Xu, a miniscule rise from 2021, when revenue was 636.8 billion yuan.
Xu said the group’s ICT infrastructure business maintained steady growth and the decline in its device business had abated.
“We achieved rapid growth in digital power and Huawei Cloud and took the competitiveness and user experience of our intelligent automotive components to new heights,” he said. (‘Digital power’ refers to the use of digital data globally).
Xu said he was “immensely proud” of the Huawei team for keeping “our heads above water” despite adverse impacts of Covid-19 and “external restrictions”.
Digitalization and decarbonization was the way forward, he pronounced, urging staff to “stay true to our vision” and “build the foundations of the digital economy”.
For the past 10 years, we have ramped up investment in cloud computing, which has put Huawei Cloud in a better position to become the foundation and enabler of the digital world,” he said.
“In the decade to come, working with our ecosystem partners, Huawei will build industrial Internet platforms and cutting-edge solutions that help industries go digital, intelligent, and low-carbon.”
Xu’s letter did not mention Huawei’s profitability or the ban imposed on Huawei and four other companies last November by the Biden administration because of security concerns, which first emerged a decade ago.
The company typically discloses its full annual results in the following year’s first quarter. But revenue for 2022 is still well below the company’s record of $122 billion in 2019, when Huawei was the world’s top Android smartphone vendor.
- Jim Pollard with Reuters.