Huawei has once again demonstrated its remarkable resilience and adaptability, achieving a 22.4% increase in year-on-year revenue for 2024, according to its annual report released on March 31, 2025. This milestone comes despite the company’s ongoing challenges, including U.S. sanctions and geopolitical pressures, showcasing its ability to innovate, diversify, and thrive in a competitive global market.
A record-breaking year in revenue for Huawei
In 2024, Huawei reported total revenue of 862.1 billion Chinese yuan (approximately $118.2 billion USD), a significant leap from the 704.2 billion yuan recorded in 2023. This marks the company’s second-highest annual revenue ever, just shy of its peak of 891.4 billion yuan in 2020—before U.S. sanctions disrupted its operations.
However, while revenue soared, net profit took a hit, declining by 28% to 62.6 billion yuan ($8.63 billion USD), down from 87 billion yuan in 2023. The decline was attributed to increased investments and the absence of one-time gains from asset sales that had bolstered profits in the previous year.
Key drivers of growth
Huawei’s diverse business portfolio played a pivotal role in driving its impressive growth. The ICT Infrastructure Business remained Huawei’s largest revenue contributor, generating 369.9 billion yuan, which represented a 4.9% year-on-year growth and approximately 43% of total revenue. This segment, which includes telecommunications equipment and carrier services, underscored its stability by maintaining its dominance in global 5G infrastructure, despite restrictions in Western markets.
The Consumer Business saw explosive growth, driven by a resurgence in smartphone sales, particularly in China. This segment generated revenue of 339 billion yuan, marking a 38.3% year-on-year increase and contributing roughly 39% of total revenue. Flagship launches like the Mate 70 series and the trifold Mate XT resonated strongly with consumers, aided by domestic semiconductor breakthroughs that enabled Huawei to re-enter the high-end 5G smartphone market.
Huawei’s foray into smart automotive solutions paid off handsomely, with the Intelligent Automotive Solutions (IAS) segment experiencing a staggering 474.4% year-on-year growth. This segment generated revenue of 26.4 billion yuan, contributing about 3% of total revenue. Partnerships with automakers like Seres (Aito brand), Chery, and Dongfeng fueled this meteoric rise, with sales of Aito-branded cars more than tripling in 2024.
The Digital Power Business, which focuses on energy infrastructure solutions for electric vehicles and renewables, aligning with Huawei’s strategic push into green technology, saw a 24.4% year-on-year growth. This segment generated revenue of 68.7 billion yuan, contributing around 8% of total revenue.
Lastly, the Cloud Computing Business continued to grow steadily, supporting AI-driven enterprise solutions and data centers. It generated revenue of 38.5 billion yuan (68.8 billion yuan including internal sales), representing an 8.5% year-on-year growth and contributing roughly 4.5% of total revenue (or 8% with internal sales).
The secrets behind Huawei’s success
Huawei’s impressive performance can be attributed to several factors. The company made a triumphant return to the high-end smartphone market after years of sanctions-induced setbacks. In China alone, shipments surged by 37%, allowing Huawei to reclaim significant market share from competitors like Apple.
Huawei has demonstrated remarkable resilience against U.S. sanctions. Since being cut off from American technologies like Google’s Android OS and advanced chips, the company has developed its own ecosystem—HarmonyOS, now installed on over 900 million devices by mid-2024—and self-developed chips like Ascend AI processors.
The company’s expansion into smart automotive solutions and renewable energy technologies has diversified its revenue streams beyond traditional telecom and consumer electronics. This strategic diversification into emerging markets has contributed significantly to Huawei’s growth.
Huawei’s commitment to innovation is evident in its heavy investment in R&D. In 2024 alone, the company invested an astounding 179.7 billion yuan into R&D—20.8% of its total revenue—focusing on foundational technologies like AI, chip development, and next-generation telecommunications.
Lastly, strong domestic support has bolstered Huawei’s recovery in China. Patriotic sentiment and government backing have played a crucial role, as Huawei is seen as a symbol of technological independence amid U.S.-China tensions.
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