Huawei Technologies saw a 564% increase in net profit during the first quarter of 2024, reaching 19.65 billion yuan ($2.71 billion), according to regulatory filings released Tuesday. The company’s revenue for the same period increased by 37% to 178.5 billion yuan.
While the filing does not provide performance breakdowns for individual business units, a Huawei spokesperson attributed the growth to “digitalization, intelligence, and decarbonization.” The company acknowledged that “uncertainty” remains a factor in the industry and global markets. However, Huawei expressed confidence in meeting its annual targets and maintaining sustainable growth.
This announcement follows Huawei’s fastest revenue growth in four years, reported in 2023. This rebound was largely due to improvements in its consumer segment and the expansion into new sectors like smart car components.
Background on US Sanctions and Market Shifts
US sanctions imposed since 2019 have significantly impacted Huawei’s smartphone business. Despite this, the company launched a new high-end smartphone with a domestically-made chip in 2023, resulting in increased market share within China. Recent data shows Huawei’s smartphone sales rose by 70% in Q1 2024, narrowing the gap with Apple’s market share in China.
Huawei’s Expanding Focus
Huawei recently launched its Pura 70 smartphone series and has become a significant player in the smart car technology market. Its driver assistance system is now utilized by at least seven Chinese automakers.
