Huawei Technologies Co., a leading name in the networking and electronics sector, has continued its impressive streak of robust quarterly profit growth, gaining ground against industry giants such as Apple Inc. and Alibaba Group Holding Ltd. The Chinese firm reported a substantial net profit of approximately 13.9 billion yuan ($1.9 billion) for the December quarter, based on Bloomberg’s calculations from its financial figures. This marks a significant increase of over 65% from the 8.4 billion yuan profit reported in the same period a year earlier.
Huawei’s consumer business has seen a resurgence, particularly after the launch of its flagship Mate 60 smartphone lineup in August, featuring a domestically designed and produced 7-nanometer processor. This move has sparked a wave of nationalistic support in China, propelling the consumer electronics division’s sales to surge by 17.3% in 2023, totaling 251.5 billion yuan.
In a strategic expansion of its operations, Huawei is actively constructing a network of chipmaking facilities, which are key to its long-term plans in sectors such as electric vehicles (EVs) and artificial intelligence (AI).
The company’s cloud computing arm also witnessed nearly 22% growth over the year. Huawei has been increasingly competitive in the domestic market, challenging tech giants like Alibaba and Tencent Holdings Ltd. In a recent development, Huawei deployed an AI-powered weather forecasting model in Shenzhen, its hometown, further showcasing its technological prowess.
Huawei’s impact is also evident in the AI sector, with its chips being utilized by Chinese AI developers. For instance, the Hong Kong-based Center for Artificial Intelligence and Robotics is using Huawei’s technology to train an AI assistant for neurosurgeons.
The company’s venture into the automotive sector is also noteworthy. Its automotive technology business experienced a dramatic growth of 128% in 2023. Huawei has been showcasing Aito vehicles in its stores across China, signaling its serious intent in the EV market.
Concurrently, Huawei’s resurgence comes at a time when Apple is facing increasing pressure from the Chinese government, which is encouraging the use of local devices and technology across various industries. This shift has bolstered consumer enthusiasm for homegrown brands like Huawei’s Mate 60.
This growing preference for local brands is reflected in the declining sales of iPhones in China, with shipments falling by about 33% in February compared to the previous year. This slump indicates a challenging environment for Apple’s flagship device in a crucial overseas market.
Huawei’s recent performance represents a significant shift in the global technology landscape, highlighting the company’s successful strategies in diversifying its business and reinforcing its position as a major competitor to global tech leaders.
