Home / Business and Economy / Huawei Profits Plunge 32% as US Sanctions Bite
Huawei Profits Plunge 32% as US Sanctions Bite
29 Aug
Summary
- Huawei's first-half net profit dropped 32% year-on-year
- Company spent 96.9 billion yuan on R&D to offset US sanctions
- Huawei shipped 26.6 million smartphones globally in H1, up 1.7%
In the first half of 2025, Chinese tech giant Huawei faced a significant challenge as its net profit dropped by 32% compared to the same period last year. The company attributed this decline to its continued heavy investment in research and development, which reached 96.9 billion yuan, up from 88.9 billion yuan in the first six months of 2024.
Despite the profit decline, Huawei's revenue rose by 4% to a record-high 427 billion yuan, the highest first-half revenue the company has achieved since 2020. This suggests that Huawei's efforts to offset the impact of the ongoing US sanctions, which have restricted the company's access to advanced chips, are starting to pay off.
One bright spot for Huawei was its performance in the smartphone market. The company shipped 26.6 million smartphones globally in the first half of 2025, a 1.7% increase from the same period a year earlier. However, the vast majority of these shipments, around 95%, were to the Chinese market, highlighting Huawei's continued reliance on its domestic customer base.
