Huawei H1 Net Profit Hits $8.1B, Up 18.2%

On August 29, Huawei reported its financial results for the first half of 2024, showcasing a robust performance across various business units. The company achieved a revenue of 417.5 billion RMB, a notable increase of 34.3% compared to the previous year, with a net profit margin of 13.2%. This led to a net profit of 55.11 billion RMB, marking an 18.2% year-on-year growth and representing the first instance of Huawei's mid-year net profit exceeding 50 billion RMB.

According to Canalys, Huawei's smartphone shipments in China for the first half of 2024 totaled 22.2 million units, reflecting a significant 55.2% increase year-on-year. The company secured a 16.1% market share, maintaining a top-five position for three consecutive quarters. In Q2 2024 alone, Huawei shipped 10.6 million phones in China, up 41% from the previous year, becoming the fastest-growing among the top five vendors with a 15% market share, ranking fourth.

Huawei’s high-end models, including the Mate60 series, Pura70 series, and the MateX5 foldable phone, have been instrumental in driving the company's strong performance in the premium market. The share of Huawei smartphones in the $600+ segment rose from 16.3% in the same period last year to 28.3% in H1 2024, with shipments increasing by 84.4%. In the foldable phone market, Huawei holds a dominant 55.9% market share, with shipments growing by 115.1%.

Huawei has experienced a steady increase in tablet shipments since 2023, with market share rising from 23% in 2023 to 28% in H1 2024, surpassing Apple to become the leading brand in the Chinese tablet market. Additionally, the company's PC shipments in China have rebounded, with market share reaching 12% in the first half of 2024.

Data from Canalys reveals that smartphone shipments featuring Huawei's HarmonyOS grew by 66.7% year-on-year in H1 2024. The operating system's market share increased to 17.2%, making it the second-largest OS in the market, trailing only Android.

In the first quarter of 2024, the total value of China's cloud infrastructure services market reached $9.2 billion. Huawei Cloud maintained a steady 19% market share, consistent with the previous year. The company’s performance in the cloud sector remained robust, aligning with overall market growth rates.

Huawei’s automotive division (HUAWEI Smart Car BU) achieved profitability for the first time in the first half of 2024. Seres reported that Huawei's automotive business generated revenues of 10.435 billion RMB and a net profit of 2.231 billion RMB for the first six months of 2024. During this period, sales of HarmonyOS-equipped vehicles reached 194,000 units, representing a 2% market share. The AITO brand emerged as a significant contributor, with 181,000 units sold, reflecting a dramatic 679.5% increase year-on-year. The Wenjie M9 and M7 models were pivotal to this growth, with M9 sales reaching 59,000 units and M7 exceeding 110,000 units. Additionally, the Hi-model Avita brand achieved sales of 18,000 units, marking a 78.4% increase.