Huawei's woes really were just a flesh wound – profits just soared 564 percent
- Reference: 1714546633
- News link: https://www.theregister.co.uk/2024/05/01/huawei_profits_soar_q1/
- Source link:
News of the profit came in a [1]filing from the Chinese concern's holding company.
The document records Q1 2024 net profit of 19.6 billion yuan ($2.7 million), marking the fourth consecutive quarter of growth.
[2]
The filing also revealed sales increased by 37 percent to 178.8 billion yuan ($24.7 billion).
[3]
[4]
Huawei has been controversial for years, with its telco networking kit barred by some nations amid security concerns. The company found its way onto the US Department of Commerce [5]entity list in 2019, meaning it is effectively barred from accessing some US-built tech.
That listing hurt enough that Huawei had to [6]terminate trade agreements, including one with German optics giant Leica, and sold off both its server hardware company xFusion Digital Technologies and its [7]Honor smartphone brand .
[8]
The Chinese company’s Q1 2023 earnings report [9]revealed profits had nearly been slashed in half thanks to the coerced sale of some business units.
[10]Teardown confirms Huawei's Pura 70 contains SMIC 7nm process node
[11]Two indicted for 'illegally exporting' chip gear from US to China
[12]Chinese meme-makers crown US Commerce Secretary as Huawei brand ambassador
[13]ASML caves to US pressure to cease servicing some kit used by Chinese customers
But Huawei fought back, [14]seeking other means of sourcing critical components such as semiconductors and producing its own Kunpeng processors that [15]compete strongly for database workloads in the cloud.
In September 2023 Huawei shocked observers when it debuted the Mate 60 Pro smartphone, a high-quality device powered by a 7nm processor – a chip China’s not supposed to have the capability to produce. US officials were [16]reportedly dismayed that the mere existence of the chip - an SMIC Kirin 9000 – highlighted the ineffectiveness of American sanctions.
Despite the excellence of that handset, and its recently released [17]sequel , Huawei is absent from [18]lists of top global smartphone makers it [19]once populated .
But in China, Huawei has suddenly soared. Analyst firms IDC and Canalys both found last month that Huawei has become China's [20]top smartphone brand as measured by shipments. ®
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[2] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2ZjISw9uYnZ58lon0tcgG7QAAAIo&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44ZjISw9uYnZ58lon0tcgG7QAAAIo&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33ZjISw9uYnZ58lon0tcgG7QAAAIo&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[5] https://www.theregister.com/2019/05/15/president_trump_huawei_emergency_ban/
[6] https://www.theregister.com/2022/05/24/xiaomi_leica_smartphone_cameras/
[7] https://www.theregister.com/2020/11/17/huawei_sells_lowend_honor_handset_unit/
[8] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44ZjISw9uYnZ58lon0tcgG7QAAAIo&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[9] https://www.theregister.com/2023/04/28/us_sanctions_cut_huawei_profits/
[10] https://www.theregister.com/2024/04/29/teardown_confirms_huaweis_pura_70/
[11] https://www.theregister.com/2024/04/26/2_indicted_for_illegal_china_exports/
[12] https://www.theregister.com/2023/09/06/gina_raimondo_huawei_ambassador/
[13] https://www.theregister.com/2024/04/26/asml_china_equipment_servicing/
[14] https://www.theregister.com/2024/04/11/huawei_developing_chipmaking_equipment/
[15] https://www.theregister.com/2024/04/29/arm_cloud_server_database_performance/
[16] https://www.theregister.com/2023/09/19/huaweis_advanced_chip_sparks_us/
[17] https://www.theregister.com/2024/04/29/teardown_confirms_huaweis_pura_70/
[18] https://www.idc.com/getdoc.jsp?containerId=prUS52032524
[19] https://www.theregister.com/2021/04/29/idc_smartphone_q1_2021/
[20] https://www.theregister.com/2024/04/29/asia_tech_news_roundup/
[21] https://whitepapers.theregister.com/
Stealing and copying IP pays and other governments do fuck all about it and bend over backwards for China.
Huawei used to spend more on R&D than most other companies in the world.
Maybe they did copy some IP, but which other companies haven't? At the same time, they are the ones that own a lot of the IP required by other companies now, as they own some of the IP round 5G technologies for example.
Companies roll in the mud and snort in the trough for as long as they can until the abused underdog gains a foothold. At that point either the abuser must find another trough or another set of abusees or will fail.
Government economic and political protectionist policies - sorry "sanctions" - have been shown to do nothing long term but is a politically popular banner to fly to make the nationalists happy.
Why do you think the western politicos "bent over backwards" for China (apart from it being incredibly cheap, easily abused and a huge market with massive benefits for the west, no need to care about the Chinese workers and the planet whilst we in the democratised West can relax, paint ourselves green and eat crushed avacado)?
No surprise
Didn't everybody predict exactly this outcome? Denying China access to US technology was merely a stumbling block for them. Soon they'll have developed their own technology that's cheaper, faster, smaller and uses less power, and they'll be the supplier of choice except for companies under the US government's thumb. USA forced China into their soon-to-be enviable position. I think that's called karma.
Re: No surprise
Soon they will have developed equivalent technology to the US, not necessarily better.
Fundamentally I agree with you that it's just a stumbling block but it just forces China to reach approximate parity with "The West". They'll probably do some things better and some things worse.
To be honest, I do see this as a generally good outcome. The Processor market for consumer PCs has been Intel vs AMD for too long and needs fresh blood. Same with the graphics card market - Nvidia is getting closer and closer to being a true monopoly in that space so I'm all for non-US competition coming in and hopefully improving competition.
The US is also unlikely to leave its companies out to dry. One thing they've done relatively well over the years is ensured that they have multiple options for government contracts, especially in the military space. Computing is just as important in the modern day so they will work hard to keep Intel/AMD/Nvidia going through rough patches if they ever need to start playing catchup with foreign competitors.
Re: No surprise
> Soon they'll have developed their own technology that's cheaper, faster, smaller and uses less power, and they'll be the supplier of choice except for companies under the US government's thumb
Come on... that was the plan all along. It's a little known fact that US politicians spend the best of their time reading the comments in El Reg. As they did, they understood that the best way to have Chinese super-geniuses really work at the maximum of their capabilities was to incite them to do so. Soon you will be enjoy "technology that's cheaper, faster, smaller and uses less power" and you will be ecstatic. It's not called "karma" is called "astuteness".
All we have to do now is wait... It won't take long now... What do you reckon?
564% YoY increase just means that last year 1Q23 was very bad
2021 total profit was 16.89 Bn$. 2022 was 5,114Bn$, 2023 12 Bn$. So we're still not back to 2021 levels.
Sorry for all the sanction fighters.
Typo
3rd para it's 2.7Bn USD, not million.
Also, the company IMO has had controversy built around it, doesn't mean the company itself is controversial. It all depends on the optics