Huawei's Q1 2024 Profits Surge 564% as Tech Giant Diversifies and Bites into Apple's China Sales

Huawei's net profit surges 564% in Q1 2024, driven by strong smartphone sales and diversification into 5G, AI, and smart driving, despite US sanctions.

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Salman Akhtar
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Huawei's Q1 2024 Profits Surge 564% as Tech Giant Diversifies and Bites into Apple's China Sales

Huawei's Q1 2024 Profits Surge 564% as Tech Giant Diversifies and Bites into Apple's China Sales

Huawei Technologies Co. reported a staggering 564% year-on-year increase in its net profit for the first quarter of 2024, reaching $2.7 billion, despite ongoing U.S. sanctions. The Chinese tech company's revenue also rose 36.7% to $24.7 billion during the period, driven by its diversification into 5G networks, artificial intelligence, and smart driving technologies.

The company's impressive financial performance is attributed to the success of its new high-end smartphones, such as the Mate 60 Pro and the Pura 70 series, which are powered by domestically-made chips. These devices have taken significant market share from competitor Apple Inc. in China, with iPhone sales declining by 19% in the country during the first quarter.

Huawei's ability to navigate the challenges posed by U.S. sanctions and capture market share from rivals suggests effective strategic pivots and innovations. The company's focus on digitalization, intelligence, and decarbonization has helped drive revenue growth and allowed Huawei to remain confident in meeting its annual business targets and achieving sustainable growth, despite industry and global market uncertainties.

Why this matters: Huawei's resurgence and strong financial performance amid ongoing U.S.-China tensions and technological rivalry highlight the company's resilience and adaptability. The tech giant's success in the domestic market and its diversification efforts have significant implications for the global smartphone industry and the broader tech landscape.

Huawei's CEO, Ren Zhengfei, expressed confidence in the company's future, stating, "Our solid performance in the first quarter demonstrates Huawei's unwavering commitment to innovation and our ability to create value for customers in the face of adversity." As Huawei continues to invest in advanced technologies and expand its presence in various sectors, the company's aggressive growth and market consolidation in China will be closely watched by industry analysts worldwide.

Key Takeaways

  • Huawei's Q1 2024 net profit surged 564% to $2.7B, despite US sanctions.
  • Huawei's revenue rose 36.7% to $24.7B, driven by 5G, AI, and smart driving.
  • Huawei's new smartphones gained significant market share from Apple in China.
  • Huawei's focus on digitalization, intelligence, and decarbonization drove growth.
  • Huawei's resilience and adaptability have significant implications for the tech industry.