Jamie Spencer
Revenue grows at fastest pace in five years, boosted by consumer tech
Huawei Technologies reported a 28% fall in net profit for 2024, totaling 62.6 billion yuan ($8.63 billion), as the Chinese tech giant ramped up investment in research and development. The decline comes after a year in which earnings were bolstered by income from the sale of its Honor smartphone unit.
The Shenzhen-based firm said it spent 179.7 billion yuan—about 20% of its total revenue—on R&D. A spokesperson noted that no major asset sales contributed to profit in 2024, in contrast to previous years.
Revenue rebounds despite chip curbs
Despite the dip in profit, Huawei’s revenue surged 22.4% to 862.1 billion yuan, marking its strongest growth since 2019. This brings the company close to its 2020 peak of 891.3 billion yuan, signaling resilience in the face of U.S. sanctions that have cut it off from high-end semiconductors and Google services.
Revenue from its core ICT infrastructure division grew 4.9% to 369.9 billion yuan, while its consumer segment—spanning smartphones and digital gadgets—jumped 38% to 339 billion yuan. Huawei’s intelligent automotive solutions unit posted revenue of 26.4 billion yuan, more than 4.5 times higher than the previous year, and turned a profit for the first time.
Gross margins and leadership remarks
Gross profit margin fell slightly to 44.4% from 46.2% in 2023. Meng Wanzhou, Huawei’s rotating chairwoman and CFO, said the results were consistent with expectations. “In 2024, the entire team at Huawei banded together to tackle a wide range of external challenges,” she said, adding that Huawei’s devices are “back in the fast lane.”
The company reaffirmed its commitment to expanding its developer ecosystem, citing core platforms such as HarmonyOS, Kunpeng, Ascend, and its cloud computing solutions.
China’s tech resilience in spotlight
Huawei continues to be a key player in China’s tech innovation push, particularly in semiconductors and operating systems, as tensions with the U.S. over tech dominance persist. Founder Ren Zhengfei recently told Chinese President Xi Jinping that concerns over the country’s lack of domestic chip capabilities had begun to ease.
