Huawei Profit Dips as Consumer Sales Continue to Climb

Huawei’s net profit dropped in 2024 due to a one-off gain a year earlier. Simultaneously, its revenue grew across all businesses, led by strong gains in its consumer and intelligent automotive units.

Net profit dropped 28% to CNY62.6 billion ($8.6 billion), impacted by an extraordinary gain in 2023 from the sale of Honor and an increase in its future-oriented investments. In 2023, net profit jumped by 144.5% to CNY 86.9 billion. Rotating chairwoman Sabrina Meng noted last year 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. The company again noted its 2024 results were in line with its forecast.

Total revenue increased by 22.4% to CNY 862.1 billion. Consumer group revenue grew 38.3% to CNY 339 billion, while automotive-related sales jumped more than fourfold to CNY 26.4 billion. The company said it shipped 23 million sets of intelligent automotive components, nearly seven times more than in 2023. ICT infrastructure, covering network gear, increased by 4.9% to CNY369.9 billion. Cloud computing sales rose 8.5% to CNY38.5 billion, while digital power revenue was up 24.4% to CNY68.7 billion.

In the domestic market, Huawei's smartphone business rebounded over the past 18 months. Its shipments in Q4 increased 24% to 12.9 million units, closing the quarter with a 17% market share, level with Apple and Vivo. The company claimed that more than 1 billion devices now run on Harmony OS. R&D spending in 2024 rose 9.1% to CNY179.7 billion, representing 20.8% of total revenue, down from 23.4% a year earlier.