Narayan AmmachchiChinese ITC titan Huawei has defied US sanctions by experiencing significant revenue growth in Latin America.
Huawei’s Latin American operations saw a 10.9% increase in revenue during 2023, reaching US$4.89 billion, according to the company’s most recent financial report.
This growth suggests a strong reliance on Huawei equipment by Latin American telecom companies, particularly for 5G network infrastructure.
Additionally, Huawei expanded its footprint in the region by offering competitive cloud storage solutions. Major retailers like Chile’s SMU Group have migrated their data to Huawei’s cloud platform.
“In Latin America, Huawei is the cloud service provider with the most nodes in the region,” the Chinese company stated in its financial report. “We promote the digital transformation of thousands of local customers in industries such as finance, media, retail, logistics and Internet,” reads the company’s financial report.
While Huawei experiences success in Latin America and China, its business is declining in Europe and the Asia-Pacific region. Sales for both regions dropped in the year, with Europe showing an 8% decrease despite market share gains.
This decline contrasts with the struggles of European competitors in Latin America, who are unable to keep pace with Huawei’s growth.
Huawei’s intelligent automotive solutions are also gaining traction in Latin America, particularly in Mexico. This popularity coincides with the latest nearshoring wave in Mexico, where more and more global automakers are setting up shop to serve the US market.
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