In 2024 Huawei Technologies saw crucial growth in key segments of its operations, including the automotive and consumer electronics industry, despite increased export controls by the US. The company reported that its revenues increased by over 22%, reaching 862.1 billion yuan ($118,16 billion), approaching pre-sanction level of 2019. However, the net profit decreased by 28%to 62.6 billion yuan, which the company explains with investments in future technologies.
Revolution in the automotive industry
The biggest increase was in the section intelligent automotive solutionsthe gross of which has jumped by 474.4%, with 4.7 billion yuan in 2023 to 26.4 billion yuan in 2024. Huawei has delivered more than 23 million components for vehicles, which represents a nearly sevenfold increase compared to the erstwhile year. The company cooperates with leading Chinese car manufacturers, specified as BYD, GAC Group and Dongfeng Motor, offering autonomous driving solutions, intelligent on-board and control systems.
"We will not produce cars under our own brand, but we supply key technologies that change the market" – emphasizes Huawei. So far he has helped partners make 15 different car models.
Smartphones and technological challenges
Despite the limitations on access to advanced processors, the consumer electronics department (including smartphones) saw an increase in gross by 38%to 339 billion yuan. Huawei has placed on the market, among others. triple-fold high-end smartphoneHowever, most sales are inactive concentrated in China. Analysts do not anticipate crucial growth in 2025 due to difficulties in obtaining components.
Investments in the Future
Huawei increased R & D spending to evidence 179.7 billion yuanwhat constitutes 20.8% of revenue. The company announces that in 2025 it will keep this level of investment, developing, among others, the strategy Harmony OS (alternative for Android), platform Kunpeng (replacing Intel and AMD processors) and Ascend (competition for Nvidii systems in AI).
"Our results are in line with expectations. We strengthen technological foundations to build independence" – said Meng Wanzhou, Huawei's rotational president.
Combating sanctions and fresh strategies
Despite American restrictions, Huawei finds ways to keep development. According to the think tank report, CSIS, the company uses intermediary companies to get TSMC AI systems and store large amounts of advanced bandwidth memory, key to the improvement of artificial intelligence.
In the telecommunications infrastructure section Huawei is inactive a global leader, ahead of Ericsson, Nokia and Samsung, and its cloud services and energy solutions have increased by 8.5% and 24%.
The year 2024 showed that Huawei, despite geopolitical pressure, can adapt to hard conditions by investing in key technologies and cooperation with local partners. Will he be able to keep this momentum in 2025? Much will depend on the further improvement of the Chinese semiconductor industry.
Leszek B. Glass
Email: [email protected]
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