Huawei 2024 Profit Drops 28%, But Revenue Grows Strongly

Post by: Pratik Kumar

Photo : Reuters

Huawei, a big technology company from China, said that its profit in 2024 became much less than before. The company made 62.6 billion yuan ($8.63 billion) in profit, which is 28% less than in 2023. A company worker said that the profit dropped because Huawei spent a lot of money on research and development. The company used 179.7 billion yuan, which is 20% of its total money, to make new technology. Also, Huawei did not sell any part of its business in 2024, so it did not get extra money like in past years.

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In 2020, Huawei sold its cheaper smartphone brand, Honor, to a company supported by the government in Shenzhen. The company had to sell Honor because the United States made rules that stopped Huawei from getting important technology like advanced chips and Google services. The money from this sale helped Huawei earn more in past years.

Even though profit became less, Huawei’s total money in 2024 became more. The company made 862.1 billion yuan, which is 22.4% higher than in 2023. This was the fastest growth in five years. Most of the money came from Huawei’s business in information and communication technology (ICT). This part of the company made 369.9 billion yuan, which is 4.9% more than before. However, Huawei’s total profit margin (the percentage of money it keeps after costs) became a little lower, going from 46.2% in 2023 to 44.4% in 2024.

This was the third year in a row that Huawei’s revenue became bigger. Before this, in 2021, Huawei lost nearly one-third of its revenue because of strong U.S. trade rules. Now, Huawei is close to reaching its best year, which was 2020 when it made 891.3 billion yuan.

One of the biggest reasons for Huawei’s success in 2024 was its smartphone and digital devices business. This part of the company made 339 billion yuan, which is 38% more than before. Another area that grew very fast was Huawei’s intelligent car solutions business. This part of the company helps carmakers make smart cars. It grew more than 4.5 times, reaching 26.4 billion yuan. Also, for the first time, this part of Huawei made a profit.

Meng Wanzhou, who is Huawei’s chief financial officer and also the daughter of the company’s founder, said that these results were expected. She said that Huawei’s team worked hard to solve big problems. She also said that Huawei’s devices, like smartphones, are now growing fast in the market again.

Huawei said it will keep making its technology better and will work with more companies to help developers create new products. The company will continue focusing on its special technology, such as HarmonyOS (its own operating system), Kunpeng and Ascend (its computer chips), and cloud computing.

Huawei has become an important company in China for making new technology. In the past, Huawei said it was in "survival mode" because U.S. trade rules stopped it from getting the latest technology. But now, the company feels more confident. In May, Huawei’s founder, Ren Zhengfei, told China’s President Xi Jinping that China no longer needs to worry so much about making its own chips and software.

Even though Huawei still faces problems because of global trade rules, its 2024 results show that the company is becoming stronger again and is ready to lead China’s technology industry.

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