This marks a small increase from the previous year's revenue of CNY 634 billion ($99.48 billion), which saw a 30% year-on-year sales drop due to U.S. sanctions. Despite the modest increase, Huawei's rotating chairman, Eric Xu, remains optimistic and stated in the company's annual New Year's letter that "U.S. restrictions are now our new normal, and we're back to business as usual." It's worth noting that the 2022 revenue is still well below Huawei's record of $122 billion in 2019 when it was the top Android smartphone vendor globally.
Impact of U.S. Sanctions on Huawei
Huawei has been facing U.S. sanctions since 2019 when the Trump administration imposed a trade ban citing national security concerns. As a result, the company has been barred from using Alphabet's Android operating system for its new smartphones and has been restricted from accessing other critical U.S.-origin technologies.
These restrictions have had a significant impact on Huawei's handset device sales, causing a decline in revenue. However, the company has continued to generate income through its networking equipment and cloud divisions and has also invested in the electric vehicle sector. Despite the challenges posed by the sanctions, Huawei's rotating chairman, Eric Xu, stated in the company's annual New Year's letter that they have become the "new normal" and that the company is "back to business as usual."