The company is anticipated to confirm revenue of 860 billion yuan ($118 billion) for 2023, a figure that brings it remarkably close to its all-time high of 891 billion yuan in 2020. This achievement is significant given that Huawei’s revenues had plummeted in the wake of U.S. sanctions, which cut off its access to advanced semiconductors and forced a dramatic decline in its consumer electronics business. The company’s chairman had already disclosed this revenue milestone in February, reinforcing the perception that Huawei has successfully adapted to its new operating environment.
Beyond revenue, Huawei will also release its full-year profit figures. In October, the company reported a 13.7% drop in net profit over the first nine months of 2023, reflecting the lingering financial impact of past restrictions. However, the company’s ongoing diversification efforts, particularly its advancements in chip technology and smart vehicles, have injected renewed momentum into its growth trajectory.
For years, Huawei executives described U.S. restrictions as an existential challenge that forced the company into "survival mode"—a period of intense restructuring and strategic recalibration. In response, the company accelerated its focus on self-sufficiency in technology, particularly in designing alternatives to Western hardware and software. This shift also involved deeper collaborations with Chinese state-backed firms and local governments, ensuring a more robust and resilient supply chain.
Recent months have seen Huawei adopt a markedly more confident tone. Founder Ren Zhengfei reportedly told Chinese President Xi Jinping in May that China’s previous concerns regarding a lack of homegrown semiconductor capabilities and operating systems had significantly diminished. This statement underscores the progress Huawei and China’s broader tech ecosystem have made in building independent, cutting-edge technologies.
While Huawei has not provided a detailed breakdown of its revenue drivers, the company has confirmed that its consumer business—once decimated by U.S. sanctions—has returned to growth. Additionally, its automotive division has witnessed rapid expansion, driven by breakthroughs in intelligent driving technology and strong demand for Huawei-powered smart vehicles.
According to estimates from Isaiah Research, Huawei likely shipped more than 45 million smartphones in 2024, marking an impressive 25% year-on-year increase. However, despite this rebound, constraints in chip yield rates remain a challenge, limiting the full potential of Huawei’s semiconductor advancements.
Industry experts view Huawei’s resurgence as emblematic of China’s broader technological evolution. Paul Triolo, a partner at DGA-Albright Stonebridge Group, highlighted the broader implications of Huawei’s resilience.
“Huawei has already demonstrated extraordinary adaptability in the face of a national state-led effort to curb its growth. In many ways, this process has forced Chinese firms across the entire IT sector to become more innovative and collaborative,” he said.
Triolo further emphasized that Huawei’s resurgence will likely leave a lasting impact on China’s technological ecosystem, fostering a wave of self-reliance and innovation across multiple industries.
Ultimately, Huawei’s upcoming results will not only affirm its ability to weather geopolitical challenges but also reinforce its status as a re-emerging technology powerhouse on the global stage.
In response to U.S. sanctions, Huawei has aggressively diversified its business, venturing into new industries and strengthening its technological self-sufficiency. Beyond its traditional stronghold in telecommunications, the company has expanded into sectors such as 5G-powered industrial solutions, energy storage for data centers, and smart automotive technology, marking a significant transformation in its business model.
Building a Self-Reliant Technology Ecosystem
With access to U.S. technology severely restricted, Huawei has undertaken a sweeping overhaul of its software and semiconductor strategy. Unable to rely on Google’s Android and Oracle’s enterprise software, the company developed its own operating system, HarmonyOS, which is now installed on over a billion devices. To further reduce dependency on Western software, it also introduced MetaERP, an internally developed enterprise resource planning (ERP) system designed to handle Huawei’s business operations independently.
On the hardware front, Huawei has made major strides in chip development, circumventing bans on U.S. semiconductor technology by designing its own advanced processors. The company’s latest chips directly compete with products from Nvidia, the leading player in AI semiconductors, reinforcing its ambition to become a dominant force in artificial intelligence.
A Powerhouse in Smart Driving and Electric Vehicles
One of Huawei’s most notable successes has been its rapid expansion in autonomous driving technology, where it has emerged as a critical supplier for state-owned Chinese automakers. Through strategic partnerships, the company is helping legacy manufacturers reinvent themselves as competitive electric vehicle (EV) brands.
Huawei’s collaboration with Dongfeng Motor-backed Seres has been particularly fruitful, leading to the success of the Aito brand. In 2023, Aito’s sales more than tripled, a testament to growing consumer confidence in Huawei-powered vehicles. The M7 and M9 models, equipped with Huawei’s advanced driver assistance systems (ADAS), have been among the top sellers, benefiting from nationwide distribution through Huawei’s retail showrooms.
Beyond Seres, Huawei has forged partnerships with Chery, BAIC, JAC Group, and SAIC Group, further solidifying its role as a technology provider for China’s burgeoning smart vehicle industry.
AI and Software: The Next Frontier
Looking ahead, Huawei has outlined ambitious plans to deepen its integration of artificial intelligence into industrial communication services. The company is focusing on enhancing its software ecosystem across connected devices, aiming to create a seamless, AI-powered technology stack for businesses and consumers alike.
Rekindling Its Global Ambitions
Despite geopolitical tensions, Huawei has signaled its intent to re-enter international markets, particularly in the smartphone sector. In February 2024, it launched the Mate X5 foldable smartphone in Malaysia, hosting a high-profile event that underscored its commitment to expanding its consumer electronics footprint outside China.
However, its ability to regain a stronghold in Western markets remains constrained, given that full access to Android is unlikely to be restored. Instead, Huawei is focusing on regions where its influence remains strong, such as the Middle East, where its telecommunications and data infrastructure business continues to grow.
A New Global Tech Player in AI?
Huawei’s evolving role in the AI ecosystem could further shape its global positioning. Industry analyst Paul Triolo notes that while Huawei’s international presence may be fragmented, its ability to build an alternative AI technology stack could make it a dominant player in select markets.
“Huawei’s international footprint will be more of a patchwork affair, but in key areas—such as AI infrastructure—it has the potential to become a leader,” Triolo said.
As Huawei continues to adapt and expand, its transformation from a telecommunications giant into a multi-industry technology powerhouse is well underway. While challenges remain, the company’s resilience and innovation-driven approach have positioned it as a formidable global competitor, shaping the future of AI, smart vehicles, and next-generation communications.