Huawei’s remarkable 2024 financial performance highlights a revenue surge to 862.1 billion Chinese yuan ($118.2 billion), a 22.4% year-on-year growth, marking its second-highest revenue ever. However, the company’s net profit dropped 28% to 62.6 billion yuan, reflecting the steep cost of its aggressive investments in the face of U.S. sanctions. These sanctions, particularly limiting access to critical semiconductors, have forced Huawei to adapt its business strategy.
Huawei’s rotating chairwoman, Meng Wanzhou, emphasized the company’s focus on improving product quality and operational efficiency. The company invested 179.7 billion yuan (20.8% of its revenue) in research and development, demonstrating its commitment to long-term growth and innovation despite external challenges.
Huawei is also diversifying its business model, expanding into data centers, cloud computing, and automotive technology. This shift reflects a strategic pivot from being a purely telecommunications company to a broader tech leader. Its consumer business, especially smartphones, has rebounded with 38.3% growth, as Huawei gained market share domestically following U.S. sanctions.
Huawei’s domestic smartphone shipments grew 37%, with market share rising from 12% to 16%, driven by technological advances and the release of products like the trifold phone. However, its global prospects remain strained by the lack of access to the Android ecosystem.
Beyond its core sectors, Huawei is investing in digital power and cloud computing. Its digital power segment grew 24.4%, while its cloud services revenue rose 8.5%. The company’s Intelligent Automotive Solution division saw a 474.4% revenue increase, highlighting its potential in the technology-driven automotive sector. Huawei’s 2024 narrative is defined by resilience, innovation, and adaptation amid global challenges.
