Huawei Bounces Back: Net Profit and Revenue Soar in Q1 Despite US Sanctions

Chinese technology giant Huawei has reported a significant increase in net profit and revenue in the first quarter of 2021. The company’s net profit increased by 564% to 19.65 billion yuan ($2.71 billion), while revenue saw a 37% rise to 178.5 billion yuan for the quarter ending in March.

Huawei’s focus on digitalization, intelligence, and decarbonization was credited with its revenue growth, although the filing did not provide a breakdown of specific business units like consumer and smart car components. Despite ongoing market uncertainty, Huawei expressed confidence in meeting its annual business targets and achieving sustainable growth.

Last year, the company experienced its fastest revenue growth in four years as its consumer segment rebounded, and new businesses like smart car components accelerated its recovery from US sanctions. Huawei’s smartphone business saw a revival after introducing a new high-end smartphone with a domestically made chip, which helped the company gain market share in China, with Apple’s share falling to nearly the same level as Huawei in the first quarter.

In addition to its smartphone business, Huawei is making strides in smart car technology with its driver assistance system being utilized by several Chinese automakers at the Beijing auto show. The company is becoming a notable player in this space and continues to innovate its product offerings despite facing challenges due to US sanctions.

Overall, Huawei’s strong performance in the first quarter highlights its resilience and adaptability to changing market conditions. With continued innovation and focus on sustainability, the company remains well-positioned for long-term success.