Chinese tech giant Huawei reported significant increases in both first-half revenue and net profit, driven by strong smartphone sales and a successful performance in its smart car components business, despite ongoing U.S. sanctions. For the period from January to June, Huawei's net profit surged by 18% to 54.9 billion yuan ($7.7 billion), while revenue saw a 34.3% increase, reaching 417.5 billion yuan. This marked the company's highest first-half revenue since 2020.
Although Huawei did not provide a detailed breakdown of earnings for its various units, a spokesperson indicated that its consumer business, which includes smartphones and PCs, along with its smart car components unit, were key contributors to the robust performance. According to research firm Canalys, Huawei shipped 22.2 million smartphones within mainland China during the first half of the year, reflecting a 55% year-on-year increase.
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Huawei re-entered the 5G premium smartphone market last year with the Mate 60 series and continued with its high-end P series phones this year. However, these sales are predominantly within the Chinese market. These launches have been celebrated domestically as a victory over U.S. sanctions, which have barred Huawei from accessing advanced U.S. technology, including chips, since 2019. The U.S. government considers Huawei a national security threat, a claim the company disputes. The scope of U.S. sanctions has since expanded to include export bans on advanced U.S. chips to all Chinese companies, aiming to limit technological advancements in China's military sector.
In the past four years, Huawei's Intelligent Automotive Solution unit has experienced substantial growth, aiming to become a leading supplier of software and components for smart electric vehicles. The unit has secured agreements with several automakers. Huawei's divisions in information and communications technology infrastructure, cloud, and digital power also delivered stable performance. Notably, the company’s first-half profits this year were not influenced by the sale of businesses or assets, a factor that had boosted profits during the same period last year.