Huawei’s User Base Nears the Billion Mark

Huawei reported a big jump in first-half revenue and net profit today, as strong smartphone sales eat into Apple's market share in China. Whilst Huawei itself remains unlisted, the numbers flowing out from the tech firm can have a significant impact on competitors.

The firm saw a boost in net profits, gaining 18% to 54.9 billion yuan as revenue also rose to it's highest level since 2020. Growth of more than 35% to reach 417.5 billion yuan is an impressive number, and it also comes as the company continue to add users.

The company now has nearly a billion active consumer devices utilising its in-house Harmony operating software. This achievement highlights the substantial user base that the tech giant has garnered despite facing sanctions from the United States.

Over the past year, Huawei's sales figures have been notable, particularly in the high-end smartphone segment. The company reported a staggering 72% increase in sales of premium smartphones in the first five months of 2024 alone. This surge is emblematic of Huawei's resilience and ability to innovate and capture market share in the competitive global smartphone market.

Deepening the rivalry with tech giant Apple (NASDAQ:AAPL), Huawei recently unveiled the Mate 60 Pro. This state-of-the-art smartphone is powered by a 7-nanometer processor that has not only set a new standard in the industry but also made an impression on Washington officials. The advanced nature of the processor underscores Huawei's commitment to leading-edge technology.

Looking ahead, the company plans to release the Mate 70 smartphone, which is expected to run on the next iteration of Harmony OS, dubbed HarmonyOS Next. The planned launch by the end of the year signals Huawei's ambition to continue enhancing its operating system and providing consumers with the latest technological advances.

In the wearables market, Huawei has outperformed competitors, shipping about 11 million units in the first quarter and surpassing Samsung Electronics Co. in this rapidly growing segment. More importantly, HarmonyOS has overtaken Apple's iOS in Chinese market share, indicating a significant shift in the balance of power within the industry.

In response to its expanding user base, Huawei is considering taking a cut of in-app purchases. This move could open up a new revenue stream for the company, capitalising on the growing number of users on the HarmonyOS platform.

Huawei is not only expanding its hardware offerings but making significant strides on the AI front as well. The development of the Ascend GPU, which outperforms mainstream offerings by being 1.1 times more effective in training AI models, positions the company as a leader in artificial intelligence.

To bolster these advancements, Huawei has established three AI data centers powered by Ascend chips in China. These centers are poised to assist local firms in developing and hosting AI services, demonstrating Huawei's commitment to fostering a robust AI ecosystem.

As these developments unfold, Huawei's global influence in technology continues to expand, reflecting the company's dedication to innovation and its adaptability in the face of adversity. With its sights set on a billion users and groundbreaking technology on the horizon, Huawei's position as a formidable competitor in the tech industry is more solidified than ever.