In the first quarter of the year, Huawei Technologies saw a significant increase in net profit, jumping 564% to 19.65 billion yuan, as reported by its parent company in a regulatory filing. The company’s revenue also experienced growth, rising by 37% to 178.5 billion yuan. The filing did not provide a breakdown of how different business units, such as consumer and smart car components, contributed to this increase in revenue.
Huawei credits its revenue growth to the impact of digitalization, intelligence, and decarbonization. The company spokesperson emphasized how these factors have played a role in driving their business forward. Despite ongoing uncertainties in the industry and global markets, Huawei remains confident in its ability to meet annual business targets and achieve sustainable growth. The company is actively working on building mechanisms for global business continuity and agile operations to adapt to the changing landscape.
This positive financial performance follows a successful year for Huawei in terms of revenue growth, marking its fastest growth in four years. The rebound in the consumer segment and income from new businesses such as smart car components have contributed to its recovery from US sanctions imposed in recent years. Additionally, the company’s smartphone business has seen a resurgence, with the launch of new high-end smartphones powered by domestically made chips, resulting in increased market share in China and surpassing Apple in terms of sales.
Apple’s market share in China fell to 15.7% in the first quarter, down from 19.7% the previous year, nearly aligning with Huawei’s market share. Huawei has also recently introduced its Pura 70 smartphone series to the market, gaining momentum in the highly competitive smartphone industry. Furthermore, Huawei has established itself as a key player in the smart car technology sector, with its driver assistance system being endorsed by multiple Chinese automakers at the Beijing Auto Show. This diversification into new areas of technology has contributed to Huawei’s overall success and growth in the market.
Huawei’s success in the first quarter demonstrates the company’s resilience and ability to bounce back from challenges. The strategic focus on digitalization, intelligence, and sustainability has helped fuel revenue growth and position the company for long-term success. By constantly adapting to market dynamics and investing in new technologies such as smart car components, Huawei remains at the forefront of innovation. With a strong foundation and a solid business strategy in place, the company is well-positioned to continue its growth trajectory and achieve its annual business targets.
