Introduction
Huawei, a global technology powerhouse, continues to navigate the complex landscape of geopolitical restrictions and semiconductor challenges while pushing forward in innovation. In 2024, the Huawei posted a 22.4% revenue increase, reaching 862.1 billion yuan ($118.2 billion)—its fastest expansion in five years. However, this growth came at a cost, as net profit fell by 28% to 62.6 billion yuan ($8.63 billion).
Huawei’s profit decline in 2024 is mainly due to its heavy R&D investments, which made up over 20% of revenue, and the absence of one-time gains like the Honor sale in 2023.
Despite this, its consumer business grew by 38%, fueled by strong smartphone sales, while its ICT infrastructure segment remained stable.
The company is focused on expanding its HarmonyOS ecosystem, boosting AI chip production, and launching the Ascend 910C processor, which could rival NVIDIA’s H100 in China.
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Key Takeaways from Huawei 2024 Financial Revenue Report
Revenue Soars, Profits Dip: Huawei’s revenue grew 22.4% to 862.1 billion yuan ($118.2 billion), but net profit fell 28% to 62.6 billion yuan ($8.63 billion) due to higher R&D costs and no business sale gains.
Heavy R&D Spending: Huawei allocated 20% of its revenue to R&D, focusing on AI, cloud computing, and semiconductor independence.
Consumer Business Drives Growth: The consumer segment (smartphones and digital devices) surged 38% to 339 billion yuan, marking a strong recovery in the mobile market.
Stable ICT Infrastructure Business: ICT business grew 4.9%, reaching 369.9 billion yuan, cementing its position in telecom and cloud solutions.
AI & Semiconductor Expansion: Huawei aims to expand HarmonyOS, Kunpeng, Ascend, and cloud platforms, with the Ascend 910C processor potentially rivaling NVIDIA’s H100 in China.
techovedas.com/nvidia-at-risk-chinas-h3c-warns-of-critical-h20-chip-shortage-and-growing-uncertainty
Huawei’s Financial Performance: A Year-on-Year Comparison
Huawei’s financials reflect a trade-off between revenue growth and short-term profitability, as it prioritizes long-term innovation. Below is a detailed comparison of its 2023 vs. 2024 performance:
| Metric | 2023 | 2024 | % Change |
|---|---|---|---|
| Revenue (Billion Yuan) | 704.0 | 862.1 | +22.4% |
| Net Profit (Billion Yuan) | 87.0 | 62.6 | -28% |
| Gross Profit Margin | 46.2% | 44.4% | -1.8% |
| ICT Infrastructure Revenue | 352.2 | 369.9 | +4.9% |
| Consumer Business Revenue | 246.7 | 339.0 | +38% |
| R&D Investment (% of Revenue) | 18.7% | 20% | +1.3% |
Revenue Growth vs. Profit Decline
Huawei’s 22.4% revenue increase demonstrates strong market resilience, particularly in consumer electronics and telecom infrastructure. However, its net profit decline of 28% reflects the cost of maintaining heavy R&D investments and the absence of extraordinary income sources.
R&D Investment: Betting on the Future
Huawei’s R&D spending rose to 20% of total revenue, a clear indication of its strategic focus on:
- AI computing with the Ascend 910C processor
- Cloud computing and enterprise solutions
- HarmonyOS expansion for smart devices
- Semiconductor independence amid U.S. trade restrictions
This mirrors a broader trend among Chinese tech companies, such as SMIC, which also saw strong revenue growth but a sharp 45.4% profit drop, as it, too, increased R&D investments.
Huawei’s Consumer Business: A Strong Comeback
The biggest highlight of Huawei’s 2024 financials is the 38% growth in its consumer business, which contributed 339 billion yuan ($46.8 billion). This growth is largely driven by:
- Strong smartphone sales, with Huawei’s Mate and P-series devices regaining market traction.
- HarmonyOS adoption, expanding its ecosystem beyond smartphones to smartwatches, tablets, and IoT devices.
- In-house chip development, allowing Huawei to reduce dependency on foreign semiconductor suppliers.
https://www.yolegroup.com/product/report/overview-of-the-semiconductor-devices-industry-h1-2025
ICT Infrastructure: A Reliable Pillar
Huawei’s ICT infrastructure business, including telecom equipment and enterprise solutions, grew 4.9% to 369.9 billion yuan ($51 billion). This sector remains Huawei’s largest revenue contributor, benefiting from:
- Expansion of 5G networks in China and global markets.
- Growth in cloud computing solutions for enterprises.
- Continued demand for networking and data center hardware.
Future Outlook: What’s Next for Huawei?
1. AI & Semiconductor Competition
Huawei’s Ascend 910C AI chip is expected to intensify competition with NVIDIA in China’s AI market. If successful, it could strengthen Huawei’s AI computing ecosystem, offering an alternative to U.S.-made chips.
2. HarmonyOS & Ecosystem Expansion
Huawei plans to further expand HarmonyOS to power more smart devices, positioning it as China’s key alternative to Android and iOS.
3. Continued R&D Investments
With an R&D budget surpassing 20% of revenue, Huawei is investing heavily in next-gen AI, cloud, and semiconductor technologies, ensuring long-term technological independence despite U.S. restrictions.
4. Navigating Global Challenges
Huawei must balance growth while managing:
- U.S. export bans affecting its chip supply.
- Global 5G market competition against players like Ericsson and Nokia.
- Profitability concerns due to high R&D expenses.
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Conclusion
Huawei 2024 financial results reflect a pivotal year of record revenue growth, but a profit decline due to strategic investments in AI chips, cloud computing, and HarmonyOS, signaling a long-term vision to reduce reliance on Western technology.
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