Crystabel Ukwuegbu
Huawei reported a 28% decline in net profit for the past year, citing global economic uncertainties and weakened domestic consumption. The Chinese tech giant earned 62.6 billion yuan ($8.6 billion) in net profit, a significant drop from the 87 billion yuan recorded in 2023.
The Shenzhen-based company remains at the center of ongoing tensions between China and the United States, with Washington raising concerns about potential espionage risks linked to its equipment—claims that Huawei has consistently denied.
Impact of U.S. Sanctions and Strategic Shifts
Since 2019, U.S. sanctions have limited Huawei’s access to American-made technology and components, compelling the company to adapt its business model and seek alternative growth strategies. Despite these constraints, Huawei’s revenue grew by 22% year-on-year, marking its third consecutive annual increase. The company generated 862.1 billion yuan in revenue, its highest since 2020, when figures exceeded 890 billion yuan.
Sabrina Meng, Huawei’s rotating chairwoman, acknowledged the challenges but emphasized that the results were “in line with expectations”. She credited the company’s workforce for overcoming external obstacles and reiterated Huawei’s commitment to maintaining quality as a competitive advantage.
Advancements in Technology and Market Competition
Huawei’s smartphone production took a major hit due to U.S. trade restrictions, but the company has since focused on developing self-sufficient technology. Last year, it introduced its first smartphone running on a fully homegrown operating system, showcasing its ability to compete with Western tech leaders.
In a bid to push innovation further, Huawei also launched the world’s first triple-folding smartphone, unveiled just hours after Apple’s latest iPhone release. While Apple continues to attract Chinese consumers, it has faced growing competition from local brands like Huawei.
Global Scrutiny and Political Tensions
Huawei remains a dominant player in 5G infrastructure development worldwide, participating in major telecom projects across multiple countries. However, the United States has urged its allies to exclude Huawei from their 5G networks, citing security concerns.
In addition, Huawei is currently facing increased scrutiny in Europe, where a cash-for-influence investigation in the EU parliament has sparked controversy. Authorities recently sealed offices and charged five individuals, alleging they sought to sway EU policies in favor of the company through bribery.
European lawmakers are expected to discuss the Huawei-related corruption allegations in an upcoming debate focused on transparency and anti-corruption measures within the EU. Calls for stricter actions against the company are likely to follow .
