Chinese tech giant Huawei reported a significant financial resurgence, with profits surging over 564% in the first quarter of 2024 compared to the same period last year. This strong performance comes as competitor Apple experiences a slump in iPhone sales within the crucial Chinese market.
Huawei, a big tech company from China, made a lot of money in the first three months of this year. Their profits went up a whopping 564%! That’s a huge increase compared to last year. They earned $2.7 billion during this time.
Revenue growth in the first quarter was achieved by “seizing opportunities in digitalization, intelligence, and decarbonization”, a Huawei representative said, adding: “The industry and global markets will remain rife with uncertainty for the rest of 2024”.
“We are confident that we can meet our annual business targets and achieve sustainable growth,” the representative added in a statement.
Huawei has been facing some problems because of disagreements between the US and China. The US has put restrictions on Huawei, saying their products could be used for spying. This made it hard for Huawei to make smartphones because they couldn’t buy parts from the US.
But Huawei didn’t give up. They started doing other things like making 5G technology, artificial intelligence, and smart-driving tech. And it worked! Their sales went up by 36.7%, reaching $24.7 billion in revenue during this time.
Their competitor, Apple, didn’t do as well in China. Apple’s iPhone sales dropped by 19% in the same period. This decline coincides with Huawei’s resurgence, suggesting a potential shift in consumer preference within the Chinese market.
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Analysts suggest this is a turning point in the ongoing rivalry between the two tech titans. Huawei’s diversification efforts, coupled with Apple’s recent challenges in China, could lead to a more competitive landscape for smartphones and other technological products.
Huawei’s success shows that they’re not backing down despite the challenges. They’re confident they can keep growing even with uncertainties in the world. However, tensions between the US and China are still high, especially regarding technology. The US is warning its allies not to use Huawei’s 5G technology, saying it could be risky.