Huawei allocated CNY179.7 billion to R&D last year, representing 20.8% of its total revenue
Chinese vendor Huawei reported CNY862.1 billion ($118.6 billion) in revenue last year, climbing 22.4% year-on-year. The vendor’s net profit declined 28% to CNY62.6 billion, impacted by an extraordinary gain in 2023 from the sale of Honor and an increase in its “future-oriented investments.”
In its annual report, the Chinese company noted it allocated CNY179.7 billion to research and development (R&D), representing 20.8% of its total revenue. Over the past decade, the company has invested a total of CNY1.249 trillion in R&D.
Sabrina Meng, Huawei’s rotating chairwoman, said that the vendor’s performance in 2024 was in line with the previous forecast.
“In the connectivity sector, Huawei navigated industry investment downturns while maintaining stable business performance. After a decade of preparation in computing, the company capitalized on opportunities in artificial intelligence (AI), achieving significant growth. Huawei’s device business regained momentum, making major advances in the HarmonyOS ecosystem,” the report stated.
“The company also refined its cloud computing strategy, and its digital power division prioritized quality in all aspects. Notably, Huawei’s intelligent automotive solutions segment turned profitable for the first time in 2024,” it added.
Revenue from Huawei’s consumer business surged 38.3% to CNY339 billion, while automotive-related sales saw a more than fourfold increase, reaching CNY26.4 billion. The company reported shipping 23 million sets of intelligent automotive components, nearly seven times the number delivered in 2023.
The ICT infrastructure segment, which includes network equipment, surged by 4.9% to CNY369.9 billion. Cloud computing revenue rose 8.5%, totaling CNY38.5 billion, while digital power sales climbed 24.4% to CNY68.7 billion.
In Q4 2024, Huawei’s smartphone shipments rose 24% year-on-year, reaching 12.9 million units. By the end of the quarter, the company held a 17% market share. Additionally, more than 1 billion devices now operate on HarmonyOS.
The company also announced the introduction of AI-centric 5.5G, or 5G-Advanced, solutions at the Huawei product and solution launch event during Mobile World Congress (MWC) Barcelona 2025.
It further noted that the rapid growth of artificial intelligence (AI) is having a profound impact on individuals, businesses and society, while mobile networks are playing a crucial role in bringing AI to a wider audience. The vendor explained that this dynamic interaction between AI and mobile connectivity is driving key transformations in the telecom sector.
To help operators adapt to these transformations, Huawei has developed intent-driven AI-centric 5.5G solutions, which include GigaGear, GreenPulse and GainLeap. These solutions aim to enhance network performance, efficience and monetization opportunities.
Commercial 5G-Advanced deployment will accelerate during 2025, while AI will help carriers reshape business, infrastructure and O&M, according to the company.
