Huawei has reported a significant surge in its 2024 revenue, driven by strong growth in its telecommunications and consumer divisions. The Chinese tech giant recorded revenue of 862.1 billion Chinese yuan ($118.2 billion), marking a 22.4% year-on-year increase. This makes it Huawei’s second-highest revenue figure ever, trailing only its record-breaking 2020 earnings of 891.4 billion yuan.
However, net profit fell by 28% to 62.6 billion yuan due to increased investments. The company continues to adapt to U.S. sanctions that limit its access to key semiconductor technologies.
Huawei’s Focus on Innovation and Strategic Investments
In 2024, Huawei ramped up its research and development spending to 179.7 billion yuan, equivalent to 20.8% of its total revenue. This represents a rise from the 164.7 billion yuan spent in 2023. The company has been diversifying its business across AI-powered data centers, cloud computing, and automotive technology.
Huawei’s rotating chairwoman, Meng Wanzhou, emphasized the company’s commitment to long-term investments in foundational technologies despite economic challenges.
5G Expansion and ICT Infrastructure Growth
Huawei’s ICT infrastructure division, its largest business unit, recorded a revenue increase of 4.9% year-on-year, reaching 369.9 billion yuan. The growth was fueled by the large-scale deployment of next-generation 5G networks, as well as the commercial introduction of 5.5G (5G Advanced) technology.
As one of the world’s leading telecommunications equipment providers, Huawei remains at the forefront of global network expansion.
China Smartphone Resurgence Boosts Consumer Business
Huawei’s consumer business experienced a strong revival, generating 339 billion yuan in revenue—a 38.3% increase from the previous year. The company’s smartphone division, which had suffered under U.S. sanctions, saw a major rebound thanks to a semiconductor breakthrough in China.
Huawei’s smartphone shipments in China surged 37% year-on-year, with its market share climbing from 12% in 2023 to 16% in 2024. This growth came at the expense of Apple, whose market share declined.
The company also made headlines with its aggressive launch of premium smartphones, including the industry’s first trifold handset. Additionally, Huawei introduced HarmonyOS 5, its first fully self-developed mobile operating system, which reportedly no longer relies on Google’s Android open-source code.
Expanding into New Business Segments
Beyond its core telecom and smartphone businesses, Huawei has been expanding into other technology sectors:
- Digital Power Division: Focused on energy infrastructure, electric vehicles, and renewable energy, this segment saw a 24.4% revenue increase, reaching 68.7 billion yuan.
- Cloud Computing: Revenue grew by 8.5% to 38.5 billion yuan. When internal cloud sales are included, the total revenue stands at 68.8 billion yuan.
- Intelligent Automotive Solutions: This division, which develops in-car software and driver-assistance systems for automakers, recorded a staggering 474.4% growth, reaching 26.4 billion yuan.
Future Outlook: Navigating Challenges and Opportunities
Despite strong domestic performance, Huawei still faces challenges in the global market due to continued U.S. restrictions. While its consumer business thrives in China, the absence of Google’s Android and access to cutting-edge chips limits its overseas expansion.
However, Huawei remains committed to innovation, with plans to deepen investments in AI, cloud computing, and digital power solutions over the next three years. By differentiating its technology offerings, the company aims to sustain growth despite economic uncertainties.
With a strong comeback in smartphones, advancements in 5G technology, and diversification into new industries, Huawei continues to solidify its position as a global tech powerhouse.
