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Huawei sees 22.4% revenue growth in 2024, while profits fall 28%
Huawei reported a revenue increase of 22.4%, totaling RMB 862.1 billion ($118.79 billion) in 2024, its second highest ever. However, net profit fell by 28% to RMB 62.57 billion ($8.62 billion). The company's R&D expenditure reached RMB 179.7 billion ($24.76 billion), representing 20.8% of its revenue, highlighting its ongoing commitment to innovation despite profit declines.
Key points
- Huawei's revenue grew 22.4% year-on-year, totaling RMB 862.1 billion.
- This revenue is the second highest in Huawei's corporate history.
- Net profit decreased by 28%, now at RMB 62.57 billion.
- R&D investment of RMB 179.7 billion, making up 20.8% of total revenue.
- Over the last decade, Huawei's cumulative R&D spending exceeded RMB 1.249 trillion.
Why it matters
- In 2023, global tech companies increased R&D spending significantly to adapt to market changes, similar to Huawei's trend.
- The increasing emphasis on R&D aligns with 2025 IT Trends highlighting the role of innovation in maintaining competitive advantage.
Huawei's strong revenue growth amid declining profits illustrates a potential challenge of balancing innovation investment with profitability, reflecting broader IT industry trends of prioritizing R&D in a rapidly evolving market.