Huawei's Revenue Soars After Gaining Market Share from Apple in China

The Shenzhen-based technology leader achieved revenues of 239 billion yuan (approximately $33.6 billion) for the quarter ending in June, marking a significant 33.7% rise compared to the same period last year, according to estimates based on the company’s semiannual financial data.

The company’s implied net profit was 35.5 billion yuan, reflecting an 18.6% decline year-over-year. This decrease is attributed to extraordinary gains Huawei recorded last year from asset sales. In 2020, Huawei sold its Honor Device Co. to a consortium, and in 2021, it offloaded parts of its server business. Revenue from these transactions has been received in installments.

Read More: Huawei’s Profits Surge 564% and Surpasses Apple in China

Huawei’s smartphone shipments surged by 50% in the last quarter. The company, along with other local players such as Vivo and Xiaomi Corp., has surpassed Apple, which has fallen to the sixth position among mobile phone manufacturers in China, according to market tracker IDC.

Apple’s sales in China declined by 6.5% during the June quarter, missing Wall Street’s expectations, despite an overall increase in smartphone shipments within the country.

Looking ahead, Huawei’s upcoming flagship model, the Mate 70, will be closely watched for potential updates to its processor when the device is unveiled later this year. The previous model, the Mate 60, raised concerns among U.S. policymakers when it launched with a 7-nanometer chip manufactured in China. This development came despite U.S. sanctions and export controls aimed at curbing advancements in Chinese chip technology.

Read More: Apple’s iPhone Falls Out of China’s Top 5 Sales Rankings as Local Rivals Gain

Additionally, Huawei’s automotive division, which provides autonomous driving technology to electric vehicle manufacturers, reported revenues of 10 billion yuan as of early July. This figure surpasses the combined revenues from the previous two years. However, Huawei has not provided a detailed breakdown of its sales.

As Huawei continues to expand its footprint in both the consumer electronics and automotive sectors, its performance in the Chinese market and its ability to navigate international trade restrictions will be key factors in its ongoing growth and competitive positioning.

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