Huawei Profit Falls 28% in 2024 Despite Fastest Revenue Growth in Five Years

Huawei Technologies reported a 28% drop in net profit for 2024, even as its revenue grew at the fastest pace in five years.

Credit: HUAWEI

The Chinese tech giant posted a net profit of 62.6 billion yuan (USD 8.63 billion), down from the previous year when earnings were boosted by the sale of its Honor smartphone unit. A company spokesperson attributed the decline to increased investment in research and development, which reached 179.7 billion yuan, or about 20% of total revenue.

Revenue rose 22.4% year-on-year to 862.1 billion yuan, nearing Huawei’s 2020 peak of 891.3 billion yuan. The company said its information and communication technology infrastructure business contributed the most, growing 4.9% to 369.9 billion yuan.

Huawei’s gross profit margin fell to 44.4% in 2024, down from 46.2% in 2023.

The consumer segment, which includes smartphones and digital devices, saw revenue climb 38% to 339 billion yuan, marking the second-highest growth among Huawei’s five major business units.

Revenue from its intelligent automotive solutions unit surged more than 4.5 times to 26.4 billion yuan. The unit also turned a profit for the first time.

Meng Wanzhou, Huawei’s rotating chairwoman and chief financial officer, said the results were in line with expectations. She noted that Huawei’s devices are “back in the fast lane” and praised the company’s efforts in overcoming external challenges.

Huawei said it will continue to support ecosystem partners by opening up its platform capabilities and offering tools and products across HarmonyOS, Kunpeng, Ascend and cloud computing.

The company has positioned itself as a key player in China’s push for technological self-reliance amid ongoing tensions with the United States.

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• Huawei’s 2024 net profit fell 28% to 62.6 billion yuan

• Revenue rose 22.4% to 862.1 billion yuan, the fastest growth in five years

• R&D spending reached 179.7 billion yuan, or 20% of revenue

Source: REUTERS