Chinese telecom giant Huawei Technologies reported a 28% decline in net profit for 2024, despite experiencing strong revenue growth driven by its consumer electronics and automotive sectors.
The company posted a net profit of 62.6 billion yuan (US$8.6 billion), down from 87 billion yuan the previous year. Meanwhile, revenue surged 22% to reach $118.2 billion, reflecting its ongoing investment in advanced technologies.
Heavy Investments & No Business Sales Impact Profits
Huawei attributed the profit decline to increased investment in future technologies and the absence of gains from business sales. The company dedicated over 20% of its revenue to research and development (R&D), with 113,000 employees—more than half of its workforce—engaged in R&D. In total, R&D spending reached 179.7 billion yuan (nearly $25 billion).
Navigating Trade Restrictions & Global Expansion
Amid escalating trade tensions, Huawei and other Chinese tech firms have been striving to counteract restricted access to U.S. and Western technologies. The U.S. government has banned American companies from supplying Huawei with advanced chips and software, including Google services for its smartphones, citing national security concerns.
Additionally, the U.S. has urged European nations, including Britain and Sweden, to limit or ban Huawei’s involvement in their telecom networks, alleging potential risks of cyber espionage and infrastructure sabotage—claims that Huawei has consistently denied. Countries such as Japan, Australia, New Zealand, and Canada have also imposed restrictions.
Strong Performance in Consumer & Automotive Segments
Despite regulatory challenges, Huawei’s consumer business saw a 38.3% surge in revenue, fueled by growing smartphone sales. Meanwhile, its automotive-related sales more than quadrupled, highlighting a shift toward smart vehicle technology.
Other key growth areas included:
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Cloud computing: Up 8.5%
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Digital power solutions: Up 24.4%
As Huawei continues its strategic investments and market adaptations, the company remains focused on long-term innovation and technological self-sufficiency to maintain its global competitiveness.
