During the Guangdong High-Quality Development Conference, Huawei’s Chairman Liang Hua announced that the company’s 2024 annual sales revenue had exceeded 860 billion yuan, marking the second-highest figure in its history.
This impressive milestone highlights Huawei’s resilience and innovation in navigating a complex global environment. A closer analysis reveals the key drivers behind this achievement.
Consistent Revenue Growth Amid Challenges
Huawei’s revenue trajectory in recent years has demonstrated steady and robust growth. In 2023, the company generated 704.2 billion yuan in revenue, reflecting a 9.6% year-on-year increase. This momentum further accelerated in 2024, with a growth rate surpassing 22%.
By comparison, Huawei’s 2022 revenue stood at 642.3 billion yuan, accompanied by a net profit of 35.6 billion yuan, which had shown a slight decline at the time. The significant rebound and expansion in 2024 underscore Huawei’s effective recovery and high-quality growth.
Synergistic Development Across Business Units
A key factor driving Huawei’s revenue growth is the coordinated development of its various business segments:
ICT Infrastructure: The Backbone of Huawei’s Growth
Huawei’s ICT (Information and Communications Technology) infrastructure segment continues to be a stable pillar of its overall revenue. As global demand for network upgrades grows, Huawei’s technological edge in areas like 5G has made it a preferred partner for telecom operators. Its involvement in domestic and international network modernization projects has ensured consistent revenue from this core business.
Consumer Business: A Critical Growth Engine
Huawei’s consumer business experienced a resurgence in 2024, significantly contributing to overall revenue growth. The successful launch of new products, such as the Mate 60 and other devices in 2023, set the stage for this recovery.
By the fourth quarter of 2024, Huawei had captured 18.1% of China’s smartphone market, topping the list with a 15.5% year-on-year increase in sales. Key contributors included:
- The mid-range Nova 13 series and high-end Mate 70 series.
- The Pura 70 series, which surpassed 10 million units sold.
- The MatePad, achieving record domestic sales.
- Wearable devices, maintaining their global leadership for three consecutive quarters.
- Smart home solutions, with rapid growth and industry-leading sales.
In international markets, Huawei’s consumer business also saw revenue growth, with wearables leading in market share across several countries.
Smart Automotive Solutions: A Rising Star
Huawei’s rapid expansion in the smart automotive sector has been another major highlight. The company’s HarmonyOS-based “Intelligent Mobility” platform delivered over 430,000 units in 2024, achieving profitability ahead of schedule.
Huawei is leveraging digital platforms to drive cost-efficient development and faster software updates, ensuring enhanced safety and comfort for consumers.
As the automotive industry moves toward increased digitalization and connectivity, Huawei is well-positioned to capture a significant share of this market.
Building a Self-Sustained Software Ecosystem
To support its growth, Huawei is focusing on building an autonomous and controllable software ecosystem, which serves as a foundation for digital connectivity across industries.
Collaborating with industry partners, Huawei has developed open ecosystems such as HarmonyOS, Euler, and Gauss to support digital transformation and innovation in various sectors.
On February 5, 2025, Huawei launched a series of new AI models, including DeepSeek-R1, DeepSeek-V3, and Janus-Pro, through the Ascend community.
These models are designed for seamless deployment on Ascend hardware platforms, offering faster and more efficient AI development and applications.
Commitment to R&D Fuels Innovation
Huawei’s continuous investment in research and development (R&D) has been a critical enabler of its success. In the first three quarters of 2024, Huawei’s R&D expenditure exceeded 127.4 billion yuan, representing a 10.8% year-on-year increase and accounting for 21.75% of its total revenue.
This commitment has led to breakthroughs in key areas, including chip technology, communications, and artificial intelligence, which have translated into enhanced product competitiveness and greater market share.
Industry Impact and Broader Implications
Huawei’s impressive revenue performance has far-reaching implications for the broader industry:
- ICT Sector: Huawei’s growth is driving the wider adoption of 5G and other innovative technologies, contributing to the establishment of global industry standards.
- Consumer Electronics: The company’s innovations have not only offered consumers better choices but have also pushed competitors to enhance their product offerings.
- Automotive Industry: Huawei’s involvement in smart vehicles is accelerating the industry’s shift toward intelligent and connected cars.
Challenges Ahead and Future Outlook
Despite its achievements, Huawei still faces significant challenges. Geopolitical uncertainties and intensifying global competition remain critical risks. However, the company has outlined a clear strategy for future growth, focusing on:
- Strengthening its position in digital infrastructure.
- Advancing its AI development initiatives.
- Expanding its self-sufficient software ecosystem to support the vision of a fully connected digital world.
By continuing to innovate and adapt, Huawei is poised to maintain its momentum and contribute further to technological advancements worldwide.