Huawei's Revenue Surges with Electric Vehicles and Patriotic Consumption, Reaching Pre-U.S. Sanction Levels

 

The company has recovered to its 2019 revenue levels, surpassing 860 billion yuan in 2024 / Reuters

Huawei's revenue surpassed 860 billion yuan (approximately 172 trillion KRW) in 2024, marking a significant recovery to pre-U.S. sanction levels from 2019. The company achieved this remarkable growth thanks to the increasing popularity of electric vehicles and the rising trend of "patriotic consumption" in China, which helped Huawei regain the top spot in the Chinese smartphone market, overtaking Apple.

At a forum in Guangzhou on February 5, 2025, Huawei Chairman Liang Hua commented on the company's performance, saying, "Last year, our ICT infrastructure business remained stable, and our consumer division, including smartphones, showed growth. Our smart car solutions business also expanded rapidly, contributing to our total revenue surpassing 860 billion yuan."

The company’s 2024 revenue marks a 22.1% increase from 2023, which was 704.2 billion yuan. Huawei's revenue in 2019, before the U.S. sanctions, had been 858.8 billion yuan. Despite initial growth following the sanctions in 2020, Huawei's revenue took a significant hit in 2021, falling by 28.6% to 636.8 billion yuan as the sanctions' effects intensified. However, the company has been steadily recovering since then, surpassing its previous revenue levels in 2024.

Although Huawei has not disclosed its net profit figures for 2024, its third-quarter results for the year show revenues of 585.9 billion yuan (approximately 117 trillion KRW) with net profits of 62.9 billion yuan (about 12.58 trillion KRW).

A key driver of Huawei's recovery has been its smartphone and electric vehicle (EV) sectors. According to market research firm Counterpoint Research, Huawei regained the number one spot in the Chinese smartphone market in the fourth quarter of 2024, with a market share of 18.1%. This marks the first time since the U.S. sanctions that Huawei has managed to reclaim the top position.

While Huawei’s smartphone sales saw a 15.5% year-on-year increase, Apple experienced a significant 18.2% decline in sales, causing the tech giant to fall to third place. Huawei’s performance has been bolstered by improvements in its smartphone offerings and the growing trend of "patriotic consumption," where Chinese consumers favor domestic brands over foreign ones.

Huawei’s success is not limited to smartphones; the company has also made substantial strides in the electric vehicle market. Huawei has partnered with electric car company SERES to create the AITO brand, which has become a leading player in the premium EV market, with the AITO M9 model selling at over 500,000 yuan (about 100 million KRW). Huawei, however, does not manufacture electric cars directly but instead provides an operating system called HongmengOS to other EV companies.

In addition to discussing Huawei’s impressive performance, Chairman Liang also shared the company’s future direction at the forum. He emphasized that Huawei is focusing on building a strong digital and smart infrastructure foundation, with a particular emphasis on artificial intelligence (AI). The company aims to promote technological and application innovations that support the integration of the digital and real economies.

Despite external uncertainties, Chairman Liang stressed that trends such as digitalization, smart technologies, and low-carbon initiatives are clear. He reiterated Huawei's commitment to strategic investments, aiming to deliver better products and services to customers worldwide. This forward-looking vision underscores Huawei's determination to navigate global challenges and continue its growth in the tech and automotive industries.