Huawei’s Consumer Segment Growth Sparks Record Revenue Surge
Huawei, the Chinese tech giant, made waves in the industry with the launch of its highly anticipated Mate 70 series in a dazzling event in Shenzhen on November 26, 2024. These cutting-edge smartphones marked a significant milestone for Huawei as they are the first devices to run on the brand-new operating system known as HarmonyOS NEXT.
Despite facing challenges from the U.S. government’s restrictions on accessing advanced technology, Huawei reported a remarkable revenue increase, surpassing 860 billion yuan ($118.27 billion) in 2024. This impressive growth, as announced by Chairman Howard Liang in a local state media report on Wednesday, represents a substantial 22% surge from the previous year and stands as the fastest expansion since 2016.
Huawei’s Remarkable Turnaround
Liang, addressing a local government conference, expressed his satisfaction with the performance of Huawei’s consumer business, noting a significant return to growth. Additionally, the company’s car solutions business showcased rapid development, while the information and communications technology sector, Huawei’s largest revenue segment, maintained stability.
The road to success has not been without its bumps for Huawei. Since 2019, the company has faced obstacles due to U.S. restrictions on accessing critical technologies from American suppliers, including cutting-edge 5G chips and Google’s Android operating system. These challenges resulted in minimal revenue growth in 2020 and a sharp decline of nearly 29% in 2021.
While the consumer segment took a hit during this period, Huawei experienced a resurgence in 2023, highlighted by the launch of the Mate 60 Pro in China. This device, which showcased impressive 5G download speeds powered by an advanced semiconductor chip, laid the groundwork for Huawei’s future success in the competitive smartphone market.
The Rise of Huawei in the Smartphone Market
Building on this momentum, Huawei continued its upward trajectory with the introduction of the Mate 70 series. Boasting cutting-edge features and powered by HarmonyOS NEXT, Huawei’s first in-house developed operating system, these smartphones captivated consumers with their innovation and performance.
In mainland China, Huawei made significant strides in the smartphone market, with shipments surging by 37% in the previous year. This surge propelled Huawei from the fourth position to second place in market share, surpassing industry giant Apple, which experienced a 17% decline. Vivo, renowned for its budget-friendly devices, claimed the top spot in market share for 2024, according to data from Canalys.
The success of Huawei’s smartphone division underscores the company’s resilience and commitment to innovation. By leveraging cutting-edge technology and strategic partnerships, Huawei has solidified its position as a key player in the global tech landscape.
As Huawei continues to push boundaries and redefine the future of technology, its consumer segment growth serves as a testament to the brand’s enduring legacy of excellence and innovation in the ever-evolving tech industry. With its pioneering spirit and unwavering dedication to quality, Huawei is poised to shape the future of technology and set new standards for the industry as a whole.
