Huawei Reports Revenue Increase in 2024 Amid Declining Margins

However, the Chinese conglomerate’s net profit dropped by 28% to CNY 62.6 billion (USD 8.63 billion), with operating margins declining from 14.8% to 9.2%.

Huawei’s remarkable revenue growth was driven by its consumer business, particularly by strong smartphone sales in China, which surged to CNY 339 billion by 38%.

Meng Wanzhou, Huawei’s Rotating Chairwoman, highlighted, “Our devices are now back in the fast lane, and we are making historic breakthroughs in HarmonyOS ecosystem development.”

We continued to optimize our business mix for cloud computing and our digital power kept forging ahead, placing quality before all else.

The company also maintained a steady performance in its information and communication technology (ICT) infrastructure segment, which grew by 4.9%, totaling USD 369.9 billion.

Moreover, Huawei’s spending on research and development (R&D) reached CNY 179.7 billion in 2024, representing 20.8% of its total revenue.

Liang Hua, Huawei’s Chairman of the Board, emphasized, “Over the past year, we strengthened investment in innovation and R&D. We continued to hone our overall competitive edge while improving customer satisfaction and user experience.”

The report reflected Huawei’s increasing dependence on its domestic market, with China contributing over 71% of its total revenue in 2024. By leveraging the company’s computing, storage, networks, digital power, devices, and intelligent automotive solutions to meet growing demands, the Chinese market contributed CNY 615.3 billion to the overall revenue.

Huawei’s limited access to the international market has led to the development of the HarmonyOS ecosystem, an alternative to Android following United States sanctions.

In Europe, the Middle East, and Africa (EMEA), Huawei maintained a steady performance in ICT infrastructure while achieving rapid growth in cloud computing and digital power solutions. The region’s revenue generated CNY 148.4 billion, accounting for 17% of the company’s revenue.

In a similar trend, the Asia Pacific contributed CNY 43.3 billion, accounting for 5% of the company’s overall revenue, which was primarily driven by accelerated 5G deployment and the rapid expansion of cloud computing and digital power.

Despite the increase in network traffic and quicker construction of 5G and data communication networks, the Americas contributed the least (CNY 36.3 billion), accounting for only 4% of Huawei’s total revenue.

Wanzhou further noted that despite the economic downturn, Huawei will increase its strategic investments over the next three years, particularly focusing on building foundational technologies and capitalizing on growth opportunities through differentiation.