Chinese tech giant Huawei has reported a staggering 564% year-on-year increase in profits for the first quarter of 2024, according to a recent company filing. Despite facing US sanctions,.
Huawei’s strong performance has allowed it to bite into competitor Apple’s sales in China.
Huawei has long been caught in the middle of the intense technological rivalry between Beijing and Washington. The US government has warned that Huawei’s equipment could be used for Chinese espionage operations, allegations that the company has consistently denied.
In 2019, Washington imposed sanctions restricting Huawei’s access to US-made components, which greatly inhibited the company’s smartphone production at the time.
In response to these challenges, Huawei has diversified its business into other fields, including 5G technology, artificial intelligence, and smart-driving technology, in an effort to boost sales. The company’s impressive first-quarter results appear to show that this strategy is working.
According to the filing, Huawei’s net profit for the January–March period reached $2.7 billion, a 564% increase from the same period last year. Revenue during this period also increased by 36.7% year over year, reaching $24.7 billion. However, the filing did not provide a breakdown of profits by sector.
Huawei, as a private, unlisted company, is not subject to the same obligations as other major firms to publish detailed financial results. Despite this, the company’s recent success has not gone unnoticed, particularly in light of the ongoing US sanctions.
In an apparent snub to Washington, Huawei unveiled its high-performance smartphone, the Mate 60 Pro, in August 2023, coinciding with a visit to China by Gina Raimondo, head of the US Department of Commerce, which was responsible for the sanctions.
Experts have questioned the effectiveness of US restrictions, as the Mate 60 Pro is equipped with a chip that would be impossible to produce without foreign technologies.
While Huawei has been doing well, Apple’s rival saw a 19% decline in iPhone sales in China during the first quarter, according to market research firm Counterpoint, which Bloomberg reported.
Huawei attributes its revenue growth in the first quarter to “seizing opportunities in digitalization, intelligence, and decarbonization.” A company representative told AFP that despite the uncertainty in the industry and global markets, Huawei is confident in its ability to meet its annual business targets and achieve sustainable growth.
The impressive earnings report comes just a month after Huawei announced that its profits more than doubled in 2023, a year in which the company continued its efforts to diversify its business in the face of ongoing US sanctions.
As tensions between Beijing and Washington remain high, with the two largest economies clashing over various issues, including trade and the self-ruled island of Taiwan, Huawei’s success serves as a testament to the company’s resilience and adaptability in the face of adversity.
The Information is Taken from MSN and Channel News Asia
