Chinese telecom giant Huawei announced on Monday that its profits dropped by 28 per cent in 2024, reflecting the challenges the smartphone maker faces over global economic uncertainty and weak domestic consumption.
The company reported net profits of 62.6 billion yuan ($8.6 billion) last year, down from 87 billion yuan in 2023. However, revenue grew by 22 per cent year-on-year, marking its third consecutive increase following a sharp drop in 2021 due to the pandemic.
Huawei’s revenue for 2024 reached 862.1 billion yuan, the highest since it surpassed 890 billion yuan in 2020.
Sabrina Meng, the company’s rotating chairwoman, said the results were “in line with forecast” and credited the workforce for overcoming various external challenges.
She added that Huawei remains “firmly committed to its quality goals” and continues to use quality as a competitive advantage.
Since 2019, US sanctions have cut Huawei off from global supply chains for technology and US-made components, initially devastating its smartphone production.
Last year, Huawei introduced its first smartphone with a fully homegrown operating system, signalling its efforts to compete with Western giants.
Huawei also launched the world’s first triple-folding phone, timed to coincide with the release of Apple’s latest iPhone, which remains a strong competitor in China but has seen its market share erode to local brands like Huawei.
