China’s Huawei Applied sciences is anticipated to say overcome US sanctions at its upcoming annual outcomes, bolstered by its software program push, progress in chips and a booming smart-driving expertise enterprise that has helped it transfer out of “survival mode”.
The corporate is about to substantiate that it took C¥860-billion (R2.1-trillion) in revenues final 12 months, simply shy of its 2020 peak of C¥891-billion, earlier than chip stockpiles dwindled and US restrictions reduce shopper enterprise revenues in half. Its chairman disclosed its 2024 income in February.
It’ll additionally report full-year revenue. In October, it posted a 13.7% drop in nine-month web revenue.
Huawei’s executives have beforehand mentioned Washington’s strikes pushed the corporate into “survival mode”, driving it to discover new enterprise traces which have largely concerned creating merchandise that may function alternate options to Western expertise and partnering with native Chinese language authorities and government-backed companies.
The corporate has in previous months struck a extra assured tone, with founder Ren Zhengfei telling Chinese language President Xi Jinping final Could that issues China had a couple of lack of homegrown chips and working programs had eased.
Huawei has not disclosed intimately its income drivers, however has mentioned that its shopper enterprise has returned to progress whereas its foray into automobiles has developed quickly.
The corporate doubtless shipped over 45 million telephones in 2024, up by 25% or extra on a 12 months earlier, although yield charges on chips stay a constraint, based on consultancy Isaiah Analysis.
‘Resilience’
“Huawei has already proven unbelievable resilience within the face of this nationwide state-led effort, and this course of has arguably pressured Chinese language companies throughout the IT stack to grow to be extra revolutionary and collaborative,” mentioned Paul Triolo, a companion at DGA-Albright Stonebridge Group.
“This is among the legacies of Huawei’s re-emergence as a expertise powerhouse.”
Huawei declined to remark.
Within the wake of US sanctions, Huawei moved into exploring areas equivalent to constructing 5G infrastructure for mines and supplying power storage programs to information centres.
Learn: Huawei goals for 100 000 apps on HarmonyOS
Reduce off from Google’s Android and Oracle, it constructed its personal working system, HarmonyOS, which it says is working on greater than a billion gadgets, in addition to an inner software program administration system it calls MetaERP.
Banned from utilizing US semiconductor expertise, it has created its personal superior chips together with ones that compete with prime synthetic intelligence chip maker Nvidia’s merchandise.
The corporate has additionally grow to be a outstanding provider of superior autonomous driving expertise, working with state-owned motoring producers to revive themselves as viable electrical automobile makers.
Huawei has labored with Dongfeng Motor-backed Seres to promote Aito-branded automobiles, with gross sales greater than tripling final 12 months. Its best-selling fashions M7 and M9 are outfitted with Huawei’s superior driver help programs and bought in Huawei’s showrooms nationwide.
There are comparable initiatives with Chery, BAIC, JAC Group and SAIC Group.
Going ahead, the corporate has mentioned it desires to combine AI into its industrial communications companies and to construct out its software program programs on related gadgets, based on state media.
Huawei has additionally signalled it intends to compete extra aggressively in abroad markets for its smartphones, having launched its foldable Mate XT smartphone in Malaysia in February in a glitzy occasion.
With out full entry to Android, although, it’s unlikely to regain its former place in Western shopper markets, although its information infrastructure presence has grown in areas such because the Center East, Triolo mentioned.
Learn: Huawei proclaims the Mate XT, a tri-fold smartphone
“Huawei’s worldwide presence shall be extra of a patchwork affair, however in some areas, like another AI stack, it might ultimately dominate in key markets.” — David Kirton in Shenzhen and Li Qiaoyi, (c) 2025 Reuters
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