Huawei sees 38% sharp hike in 2024 revenue as smartphone sales surge

Huawei has published its 2024 annual report and announced a sharp hike in sales revenue following the comeback of its smartphone business. The company has obtained big earnings this time, despite constant pressure from the US sanctions.

The company achieved the highest revenue in 2020 – 891 billion yuan. After the ban, it’s the first time when Huawei inches closer to its peak and made a sales revenue of 862.1 billion yuan ($118.2 billion) in 2024. It has risen by 22.4% year-on-year.

As per calculations, this is the second-highest revenue figure of the firm to date. While the overall revenue is worth celebration, the net profit dropped by 28%.

Huawei said the continued rise in investment resulted in a slight decline in net profit. It is currently 62.6 billion yuan ($8.63 billion). The company adds investments are necessary to deal with outer challenges, like the US trade export controls.

2024 annual report highlights that Huawei has increased investment in the R&D section from 164.7 billion (2023) to 179.7 billion (20.8% of its total revenue).

Consumer Business:

Huawei is seeing a hike of 38% to 339 billion yuan in the consumer business that includes smartphones, tablets, PCs, and other digital gadgets. It’s the second-highest growing segment among its five main businesses.

A major credit goes to self-developed Kirin 5G chips, innovative phones, AI features, and self-developed HarmonyOS 5. These factors have given a tough fight to Huawei’s rivals like Apple in China. Now, the OEM is eyeing a global expansion.

Huawei sees 38% sharp hike in 2024 revenue as smartphone sales surge (Image Credits: Huawei)

ICT Infrastructure

The company’s Information and Communication Technology sector has the highest contribution in the revenue of 369.9 billion yuan, increased by 4.9% YoY.

Smart Driving Business

Huawei’s smart automotive solution business reports a jump of 4.5 times to 26.4 billion yuan. The company has started teaming up with new and global automobile companies to expand its smart car solutions segment to a greater extent.

Meng Wanzhou, Huawei Rotating Chairwoman, said:

“In 2024, the entire team at Huawei banded together to tackle a wide range of external challenges while further improving product quality, operations quality, and operational efficiency.”

Huawei is also focusing on new businesses such as digital products as well as 5G network services. It is seeing a growth of 24.4% (68.7 billion yuan) this year. Cloud computing gains 38.5 billion yuan revenue with 8.5% YoY growth.

The firm’s Rotating Chairwoman adds that over the next three years, despite an economic downturn, the company will increase investment in strategic depth, particularly in building foundational techs, and seek growth opportunities through differentiation.