The Huawei sales space on the Cellular International Congress in Barcelona, 2025.
Arjun Kharpal | CNBC
Huawei on Monday reported a genius leap in 2024 income as its core telecommunications and shopper companies sped up.
Huawei reported income for 2024 of 862.1 billion Chinese language yuan ($118.2 billion), a 22.4% year-on-year stand.
It’s the corporate’s second-highest income determine ever, in line with CNBC calculations, simply shy of the checklist 891.4 billion yuan reported for 2020.
Internet benefit fell, alternatively, to 62.6 billion yuan, a decrease of 28% as opposed to 2023. Huawei stated this was once a results of expanding investments.
It comes because the Chinese language era vast tries to evolve its trade to do business in with U.S. sanctions that experience limited its get entry to to key applied sciences like semiconductors.
“In 2024, the entire team at Huawei banded together to tackle a wide range of external challenges, while further improving product quality, operations quality, and operational efficiency,” Huawei’s rotating chairwoman Meng Wanzhou stated within the corporate’s annual file.
Huawei spent 179.7 billion yuan on analysis and building, equating to twenty.8% of its income. That’s upper than 2023’s 164.7 billion R&D determine. Huawei has been diversifying its trade in boxes together with knowledge facilities for AI, cloud computing and car era.
“Over the next three years, despite an economic downturn, we will increase investment in strategic depth, particularly in building foundational technologies, and seek growth opportunities through differentiation,” Meng stated.
Huawei’s gross sales ultimate 12 months have been pushed by way of its two greatest companies — ICT infrastructure and shopper — which in combination account for round 82% of the corporate’s general income.
Earnings on the ICT infrastructure section, which contains its provider trade, rose 4.9% year-on-year to 369.9 billion yuan. That is the Shenzhen headquartered-firm’s greatest trade by way of income. Huawei is likely one of the global’s greatest telecommunications apparatus firms and the corporate stated large-scale deployment of next-generation 5G networks had helped pressure enlargement.
The corporate additionally stated that 2024 was once the 1st 12 months of industrial deployment of next-generation networks, dubbed 5.5G or 5G complicated, which additionally helped give gross sales a spice up.
China smartphone revival
An acceleration in Huawei’s shopper trade additionally aided its income figures. The patron trade raked in gross sales of 339 billion yuan, a 38.3% stand and a genius acceleration from the expansion open ultimate 12 months.
From the top of 2023, alternatively, a semiconductor leap forward in China allowed Huawei to regroup and leave high-end telephones that experience offered really well regionally.
In 2024, Huawei’s smartphone shipments in China jumped 37% year-on-year, future its marketplace percentage rose to 16% from 12% in 2023, in line with knowledge from Canalys. This got here on the expense of Apple, which noticed its marketplace percentage decrease and shipments fall.
Huawei has aggressively introduced top rate smartphones, together with the first-ever trifold handset, and has additionally begun to slowly relaunch units out of the country.
In the meantime, Huawei additionally excused HarmonyOS 5 in 2024, the 1st model of its self-developed cellular working gadget that reportedly not makes use of any open-source code from Google Android.
Nonetheless, analysts have advised CNBC that Huawei’s out of the country potentialities stay a problem given its shortage of get entry to to Android, which runs at the majority of the arena’s smartphones, and persevered restrictions in having access to probably the most state-of-the-art chips, reminiscent of the ones present in Apple and Samsung units.
To mitigate one of the results of U.S. sanctions over the generation few years, Huawei has been pushing into fresh boxes reminiscent of its virtual energy section, which incorporates a focal point on power infrastructure in boxes reminiscent of electrical automobiles and renewables.
This section — nonetheless an overly fresh trade — noticed income stand 24.4% to 68.7 billion yuan.
Cloud computing income got here in at 38.5 billion yuan, up 8.5% year-on-year. Huawei stated that once cloud gross sales to its personal trade devices are taken into consideration, the overall income for the section is 68.8 billion.
Huawei’s smallest trade, referred to as Clever Automobile Resolution, reported a 474.4% year-on-year stand in income to 26.4 billion yuan. Huawei develops in-car tool in addition to motive force support programs for third-party automakers.
