Huawei is taking market share from Apple despite Western sanctions

In August, Huawei released a new high-end smartphone, made mainly from its own microchips. Photo: STR/AFP via Getty Images

Huawei's profits soared more than sixfold after the Chinese tech champion overcame Western sanctions and snatched market share from Apple.

The Shenzhen-based company reported profits 19.6 billion yuan (£2.1 billion) over three years. months through March, an increase of 564% over the same period last year.

This is despite the fact that last year the US faced export controls and bans on the sale of US network equipment abroad, including in the UK.

In August, the company released a new high-end smartphone, which is mainly was made using domestic microchips.

It proved to be a surprise hit among Chinese consumers and helped Huawei undercut Apple's iPhone sales. in the Far East.

The company is also developing advanced artificial intelligence chips as it tries to compete with Silicon Valley giant Nvidia, whose sales to China have been limited by the Biden administration.

China has invested heavily to catch up with the United States. and Taiwan's advanced semiconductor manufacturing, reaping rewards for companies like Huawei that have struggled to get hold of foreign-made chips.

Huawei said revenue rose 37% in the quarter to $178.5 billion RMB The sales come during the critical Chinese New Year period, when shoppers typically spend big on electronics.

This marks a sharp turn in Huawei's fortunes after CEO Guo Ping said in 2020 that the company's goal was “survival” after “continuous aggression from the US government.”

In December The company said it was “back on track,” claiming it had weathered the storm after reporting an increase in annual revenue.

Huawei smartphone sales in China rose 70% in the first quarter of the year, according to research firm Counterpoint. , almost matching Apple's.

By comparison, Apple's sales are believed to have fallen sharply. The US tech giant is expected to reveal the extent of its sales decline in China on Thursday when it reports results for the first three months of the year.

China is discouraging government employees from bringing foreign-made devices to work.

Huawei is also investing heavily in smart car technology as it seeks deals with major automakers.