Huawei, a Chinese technology company, is anticipated to announce success in overcoming U.S. sanctions in its upcoming annual results. This achievement is attributed to its focus on software, advancements in chip technology, and growing business in smart-driving technology, which has helped the company transition out of a period of uncertainty. The company is expected to confirm revenues of 860 billion yuan ($118 billion) last year, close to its peak in 2020. Despite challenges such as dwindling chip supplies and U.S. restrictions impacting consumer business revenues, Huawei's chairman revealed its 2024 revenue projections in February.
The company is also expected to report a full-year profit, following a 13.7% decline in net profit over nine months as of October. Huawei's response to U.S. actions was described as entering "survival mode," prompting the exploration of new business opportunities that involved developing products as alternatives to Western technology and collaborating with Chinese authorities and state-backed enterprises. Huawei's founder, Ren Zhengfei, noted a reduced concern within China regarding the availability of domestic chips and operating systems.
The company's revenue sources have not been fully disclosed, but it has indicated growth in its consumer business and rapid progress in the automotive industry. Despite challenges in chip yield rates, consultancy firm Isaiah Research estimates Huawei shipped over 45 million phones in 2024, exhibiting a 25% increase from the previous year. Industry experts acknowledge Huawei's resilience and adaptability in the face of national pressure, leading to increased innovation and collaboration among Chinese technology firms.
In response to being cut off from key Western technology providers, Huawei has diversified its business into areas such as 5G infrastructure for mines and energy storage solutions for data centers. Developing its own operating system, HarmonyOS, and an internal software management system known as 'MetaERP,' Huawei has aimed to reduce its dependence on Google's Android and Oracle. Additionally, the company has innovated in semiconductor technology, creating advanced chips that rival those from top artificial intelligence chipmaker Nvidia, as a response to restrictions on U.S. semiconductor technology. Huawei has not provided specific comments on these developments.