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While advancing in various tech fronts amid tightening U.S. export curbs, China’s Huawei reported a third straight year of revenue growth in 2024 but suffered a 28% drop in net profit, according to its freshly released annual report.
Reports from Reuters and AP attribute this decrease to higher future-focused investments and the lack of business sale gains. Notably, the tech titan, one of China’s first global tech brands, spent over 20% of its revenue on R&D, as highlighted by the reports.
The trend is similar to its local chipmaking counterpart, SMIC. The Chinese foundry giant reported a 27% rise of revenue to $8.03 billion in 2024, which is the first time its annual revenue surpassed the $8 billion milestone. However, SMIC’s annual net profit fell 45.4% to $493 million in 2024, mainly due to reduced investment and financial gains.
Despite this, Huawei’s sales grew at its fastest pace in five years, as per Reuters. In 2024, Huawei’s revenue jumped 22.4% to 862.1 billion yuan ($118.2 billion). Gross profit margin fell to 44.4% from 46.2% in 2023, the company said.
Meanwhile, Huawei reported a 28% drop in net profit for 2024, falling to 62.6 billion yuan ($8.63 billion), as last year’s earnings boost from the Honor handset sale was absent, according to AP.
Huawei’s ICT infrastructure remained its top earner, up 4.9% to 369.9 billion yuan. Meanwhile, its consumer business—smartphones and digital devices—soared 38% to 339 billion yuan, the second-fastest growth among its five segments.
The company states in its annual report that it plans to expand platform access for partners and offer developers more tools across HarmonyOS, Kunpeng, Ascend, and cloud computing.
According to Wccftech, Huawei’s upcoming Ascend 910C is set to heat up competition, and could be a serious contender to NVIDIA’s H100 in China.
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(Photo credit: Huawei)
