Remarkably, within a span of just a few years, Huawei has navigated the protracted battle of the "technology blockade" and successfully transformed its "choked" situation into an aggressive pursuit of technological sovereignty.

A few years ago, technologically dominant countries unexpectedly targeted Huawei, leading to a forced disruption of the chip supply chain, consecutive losses in overseas markets, and a tidal wave of malicious public opinion, plunging the company into an unprecedented crisis. However, recent financial reports indicate that Huawei has not only survived this critical period but is also beginning to fight back.

According to the 2024 financial report, Huawei achieved global sales revenue of RMB 862.1 billion and a net profit of RMB 62.6 billion. Operating cash flow stood at RMB 88.417 billion, marking a 26.7% increase year-on-year. Revenue in 2024 surged by 22.42% compared to RMB 704.2 billion in 2023, with the terminal business continuing to recover and grow within the core sector.

This impressive performance not only signifies Huawei's breakthrough from a deadlock but also reflects profound shifts in the global technology industry landscape. To reach the pinnacle of global technology, Huawei must continue to forge ahead on the dual fronts of technological breakthroughs and ecosystem construction.

Revenue Surge Against the Odds

Huawei's strategy to overcome adversity stems from its "pressure principle" approach: multi-dimensional business synergy and precise market strategies have jointly paved the way for its countertrend growth.

The terminal business has been the primary contributor to Huawei's record-high revenue.

Financial data reveals that in 2024, terminal business revenue soared to RMB 339.006 billion, a 38.3% increase year-on-year, closely trailing the RMB 369.903 billion of the ICT infrastructure business. The Mate series phones, equipped with self-developed Kirin chips, have returned as market leaders, reshaping the high-end mobile phone landscape with advanced technologies like satellite communication and HarmonyOS, and dramatically reversing the terminal business's downturn.

The smart car solutions business has also shone brightly. Leveraging its communications, chip, and AI technology accumulation, Huawei has empowered the automotive industry and entered a period of harvest. Financial data shows that smart car solutions revenue reached RMB 26.353 billion, with a growth rate of 474.4%, achieving annual profitability for the first time.

Additionally, the digital energy and cloud computing businesses provide stable support for Huawei's revenue growth.

Relying on technological advantages in photovoltaics and energy storage, the digital energy business achieved a 24.4% revenue increase, continually solidifying its market position amidst the digital transformation wave in the energy sector. Huawei's smart photovoltaic solutions serve over 150 countries and regions, enhancing power generation efficiency at multiple large-scale photovoltaic power stations.

Through the deep application of the Pangu large model in government, finance, and other industries, the cloud computing business generated revenue of RMB 68.8 billion, a 8.5% year-on-year increase, with overseas public cloud revenue surging by over 50%. In the government sector, the Pangu government large model enhances urban governance efficiency for multiple local governments. In the financial sector, it offers intelligent risk control, customer service, and other solutions to numerous banks.

While Huawei's recovery momentum is robust, maintaining this growth trajectory remains uncertain.

Mixed Blessings for the Terminal Business

Despite the global consumer electronics market's continued sluggishness, Huawei's terminal business has recovered against the trend, not only reclaiming lost ground but also achieving comprehensive breakthroughs in the high-end market and innovative tracks.

On one hand, Huawei has launched a robust "combination punch" in product innovation, with flagship models like the Pura70 series, Mate70 series, and PuraX foldable screens, each setting industry benchmarks.

Specifically, the Pura70 captivated numerous consumers with its exceptional imaging system and performance, with shipments surging 125% year-on-year compared to the P60 series. The Mate70 series drove a 32% increase in market share for price segments above US$600, breaking Apple and Samsung's long-term monopoly in the high-end mobile phone market. In the foldable screen sector, Huawei surpassed Samsung (23%) for the first time with a 35% market share.

On the other hand, the technology ecosystem's development has injected continuous growth momentum into Huawei's terminal business. By the end of 2024, there were over 1 billion HarmonyOS ecosystem devices, with over 7.2 million developers, and HarmonyOS5's domestic market share reached 19%, surpassing iOS for the first time.

Furthermore, enhancing supply chain autonomy and controllability is a solid foundation for Huawei's terminal business recovery.

In 2024, Huawei's localization rate for key components increased by 28 percentage points compared to 2023. The core chip Kirin 9000S1 employs domestic 14nm technology, with GPU performance improved by 30% and NPU computing power reaching 2.4 times that of the previous generation. Although still lagging behind international advanced processes, it meets high-end models' performance needs, effectively mitigating risks from external technology blockades.

Despite Huawei's notable achievements in the terminal business, the industry's current status and competitive landscape remain challenging.

The global consumer electronics market shows weak growth, with smartphone shipments declining for multiple consecutive years, and market competition intensifying. International giants like Apple and Samsung continue to increase R&D investment and launch new products to capture market share. Domestic manufacturers such as Xiaomi, OPPO, and vivo are also making continuous strides in the high-end market, introducing products with unique features, further intensifying market competition.

Additionally, overseas market expansion faces numerous obstacles. Geopolitical factors restrict Huawei in some overseas markets, posing significant challenges for brand promotion and market access. Breaking through geopolitical barriers and regaining overseas market share has become crucial for Huawei's terminal business's future development.

Initial Success in Smart Cars

In the past year, Huawei's smart car business achieved a 474.4% growth rate, shocking the industry and marking the initial success of Huawei's strategic layout in the smart car field.

HarmonyOS Drive delivered over 445,000 vehicles in 2024, with the Wenjie M7 model alone delivering 197,000 units. Maintaining the industry's highest average price in the high-end market, the Wenjie M9 model's order volume exceeded 100,000 units, with an average price of RMB 468,000, successfully establishing a presence in the new energy high-end market and breaking traditional luxury automakers' market monopoly.

Huawei's explosive growth in the smart car field primarily benefits from its forward-looking technology layout and outstanding technological prowess.

The ADS 3.0 intelligent driving system, equipped with the Ascend AI chip, achieves "mapless" coverage of 95% of national roads. The urban NCA function further reduces takeover frequency by 80%, significantly enhancing driving safety and convenience, allowing users to truly experience the allure of intelligent driving. Over 500,000 vehicles are equipped with this system.

Secondly, the deep integration and control of the supply chain are another pivotal factor in Huawei's smart car business's rise.

Huawei's annual shipments of smart car components exceed 23 million, encompassing core areas like electric drive systems, smart cabins, and autonomous driving. These large-scale shipments not only reflect the market's high recognition of Huawei's products but also drive marginal costs down through economies of scale, laying a solid foundation for business profitability.

It's worth noting that Huawei has closely collaborated with over 600 industrial chain partners, including Thalys and Chery, through the "exchange technology for market" strategy, launching 15 cooperative models across various power types and vehicle categories to accurately meet different consumers' needs and rapidly expand the market.

Undeniably, Huawei excels in the smart car field. With deep technological accumulation in communications, chips, AI, and other domains, it holds a leading edge in core technologies such as intelligent driving, smart cabins, and the Internet of Vehicles, enabling it to provide full-stack smart car solutions for automakers. Its strong brand influence and extensive R&D team provide a robust guarantee for technological innovation and product iteration.

However, global competition in the smart car market has reached a fever pitch. Automakers independently developing intelligent driving technologies and smart cabin systems have become the norm, and Huawei faces significant competitive pressure.

Traditional automotive giants like Volkswagen and Toyota, leveraging their profound manufacturing heritage and vast market share, are accelerating their transformation towards intelligence and investing heavily in intelligent driving technologies and smart cabin systems' research and development. New energy automakers such as Tesla lead the industry trend with their advanced autonomous driving technology and innovative business models.

Breaking through the technological encirclement of international automakers has become a major challenge for Huawei's smart car business's future development.

Summary

Currently, technologically dominant countries rely on their monopoly advantages in underlying technologies like chip manufacturing and operating systems to construct formidable technological barriers. Simultaneously, disruptive technological waves such as AI large models and quantum computing are surging, and those who can take the lead in mastering core technologies will dominate the technological discourse for the next decade.

Amid external environment uncertainties, Huawei continues to bolster its technology investment. In 2024, R&D expenses reached RMB 179.7 billion, accounting for 20.8% of revenue, with cumulative investment exceeding RMB 1.25 trillion over the past decade. It aims to continually breach technology blockades and expand its business territory with its robust technological strength, unwavering strategic resolve, and agile market strategies.

As the global technology industry undergoes reconstruction, it's worth anticipating whether Huawei can spearhead breakthroughs, leveraging its technological innovation and business ecosystem advantages.