Huawei's woes really were just a flesh wound – profits just soared 564 percent

The Chinese domestic market doesn't care about sanctions

Huawei's latest earnings filing revealed that despite US sanctions it still managed to grow its net profits a whopping 564 percent year-on-year.

News of the profit came in a filing from the Chinese concern's holding company.

The document records Q1 2024 net profit of 19.6 billion yuan ($2.7 billion), marking the fourth consecutive quarter of growth.

The filing also revealed sales increased by 37 percent to 178.8 billion yuan ($24.7 billion).

Huawei has been surrounded by controversy for years, with its telco networking kit barred by some nations amid security concerns. The company found its way onto the US Department of Commerce entity list in 2019, meaning it is effectively barred from accessing some US-built tech.

That listing hurt enough that Huawei had to terminate trade agreements, including one with German optics giant Leica, and sold off both its server hardware company xFusion Digital Technologies and its Honor smartphone brand.

The Chinese company’s Q1 2023 earnings report revealed profits had nearly been slashed in half thanks to the coerced sale of some business units.

But Huawei fought back, seeking other means of sourcing critical components such as semiconductors and producing its own Kunpeng processors that compete strongly for database workloads in the cloud.

In September 2023 Huawei shocked observers when it debuted the Mate 60 Pro smartphone, a high-quality device powered by a 7nm processor – a chip China’s not supposed to have the capability to produce. US officials were reportedly dismayed that the mere existence of the chip - an SMIC Kirin 9000 – highlighted the ineffectiveness of American sanctions.

Despite the excellence of that handset, and its recently released sequel, Huawei is absent from lists of top global smartphone makers it once populated.

But in China, Huawei has suddenly soared. Analyst firms IDC and Canalys both found last month that Huawei has become China's top smartphone brand as measured by shipments. ®

More about


Send us news

Other stories you might like