Huawei has presented Your annual results report corresponding to 2024. The third smartphones manufacturer in China has achieved strong acceleration in its consumption business, with a significant increase in income, and not so good news in regards to its net benefit.
But the key to Huawei’s results is not in the numbers. It is in how it is being reconvirt as a company to deal with the sanctions imposed by the United States.
How is he going to Huawei. Since the Trump administration Break completely with the Chinese giant in 2019the company has drawn different action plans to rekindle its consumption business.
Strategies that seem to be operating, since in 2024 Huawei increased by 38.3% the interannual income of this division, reaching a total of 339 billion yuan at the end of the year.
It is the second best in income in the company’s history, behind the record reported at the end of 2019. Huawei sales last year have two main responsible: telecommunications infrastructure and the consumption area. Two pillars representing about 82% of the company’s total income.
Huawei advances in semiconductor matterdodging a good part of US restrictionsnext to Strong support of the Chinese government They have significantly promoted sales. In the mobile phone market, Huawei experienced an interannual increase of 37%, while the telecommunications infrastructure division grew 4.9%, driven by the deployment of 5G networks and the start of the commercialization of 5.5g networks.
Despite the record in income, Huawei’s net benefit has fallen by 28%. There is a weight of weight for it and it is good news: the company is making more investment than ever in innovation and development.
Diversify, the new key to the company. Huawei plans to increase investment in R&D in the next three years to seek opportunities for growth and differentiation with respect to its competitors. The area of consumption and telecommunications remains the main pillar for its income, but diversifying will be one of the keys to Huawei within three years.
Huawei is making investments in new sectors, such as infrastructure for electric vehicles and renewable energy. Related to the engine scope, the company is offering automotive solutions for smart vehicles, such as ADAS and software systems. This last business grew by 474.4% last year, and projects such as Avat 11 either Luxeed S7companies that develop luxury vehicles with Huawei support and technology, are the sign that this will be one of the next income pillars for the company.
The foreigner, the main barrier to overcome. The commercial war between China and the United States He has shown that the Asian country can maintain the profitability of its companies without depending on foreign partners. However, Huawei still faces difficulties to expand outside China.
In Europe we are still waiting for movements such as Harmonyos Next in China, the first operating system developed 100% by Huawei outside the Android nucleus. This movement will be key to determining whether the company can consolidate its technological independence globally, depending on the partners to capture in our territory.
He achieves it or not, the key is that Huawei does not need success in any other country outside his to remain profitable as a company. Although, of course, to compete with the best you have to be where the best.
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