Huawei has released its financial performance report for the first half (H1) of 2025, showcasing a strong revenue boost primarily driven by flagship smartphone sales. However, despite the rise in revenue, the company reported a sharp decline in net profit due to significant research and development (R&D) expenditures. The dual trend highlights Huawei’s ongoing strategy of balancing immediate financial gains with long-term technological resilience.
Revenue Growth in H1 2025
Huawei generated 427 billion yuan ($59.7 billion) in revenue between January and June 2025. This marks a 4% year-on-year increase, making it the company’s highest first-half revenue since 2020. The surge is largely attributed to the strong performance of its premium smartphone lineup, especially the Huawei Pura 80 series.
According to market data, Huawei shipped nearly 26.6 million smartphones worldwide in the first half of the year, a 1.7% growth compared to H1 2024. While the global contribution was relatively small, around 95% of shipments were concentrated in the Chinese market, reinforcing Huawei’s strong domestic base.
Summary Table
Key Aspect |
Details |
|---|---|
Revenue (H1 2025) |
427 billion yuan ($59.7 billion) |
Year-on-Year Revenue Growth |
4% |
Smartphone Shipments |
26.6 million units (1.7% YoY increase) |
Market Share Distribution |
95% domestic (China), 5% international |
Key Product Driver |
Huawei Pura 80 series |
Net Profit (H1 2025) |
37 billion yuan ($5.17 billion) |
Profit Change |
32% decline year-on-year |
R&D Expenditure |
96.9 billion yuan (up from 88.9 billion yuan in H1 2024) |
Upcoming Devices |
Mate 80 series, Mate XTs, other premium models |
Official Website |
Flagship Smartphone Sales Drive Growth
The success of Huawei’s Pura 80 series, launched on July 10, 2025, significantly contributed to the company’s revenue growth. Equipped with a switchable dual-telephoto camera system, an elegant design, EMUI 15 software, and advanced hardware features, the Pura 80 series gained traction among consumers looking for innovation and performance.
This new series appealed not only to existing Huawei users but also attracted consumers switching from rival brands. The enhanced user experience and upgraded software ecosystem motivated many to adopt Huawei’s latest offerings.
The Chinese market, in particular, embraced the Pura 80 series, with analysts crediting it as the primary driver behind Huawei’s strong revenue performance in the first half of the year.
Profit Decline Despite Strong Sales
While revenue saw an upward trend, Huawei’s profit margins took a significant hit. The company reported a 32% year-on-year decline in net profit, amounting to 37 billion yuan ($5.17 billion) for H1 2025.
The decline was attributed to heavy investments in research and development. Huawei spent 96.9 billion yuan on R&D during the first half of 2025, up from 88.9 billion yuan in H1 2024. This increase in expenditure highlights Huawei’s commitment to maintaining technological independence and innovation, especially under the ongoing pressure of US trade restrictions and sanctions.
Huawei’s management has emphasized that such investments are critical to the company’s long-term strategy. The R&D spending not only supports the development of advanced smartphone technology but also strengthens Huawei’s capabilities in 5G, AI, semiconductors, and other strategic sectors.
Looking Ahead: H2 2025 Prospects
As the company moves into the second half of 2025, Huawei is preparing to expand its product lineup further. Upcoming launches include the Mate 80 series, Mate XTs foldable smartphones, and other advanced consumer devices.
Analysts believe that these releases could help Huawei sustain its revenue growth and potentially stabilize profit margins if production efficiency improves. However, the balance between R&D investment and profitability will remain a critical challenge in the coming quarters.
Frequently Asked Questions (FAQs)
1. How much revenue did Huawei earn in H1 2025?
A. Huawei earned 427 billion yuan ($59.7 billion) in revenue, reflecting a 4% increase compared to H1 2024.
2. What was Huawei’s net profit for H1 2025?
A. Huawei reported a net profit of 37 billion yuan ($5.17 billion), which represents a 32% decline year-on-year.
3. What contributed most to Huawei’s revenue growth?
A. The flagship Huawei Pura 80 series, launched in July 2025, was the primary driver of revenue growth due to its innovative features and strong reception in China.
4. Why did Huawei’s profit decline despite higher revenue?
A. Huawei’s profit fell because of heavy R&D investments amounting to 96.9 billion yuan, aimed at ensuring long-term technological advancement and resilience against trade restrictions.
5. What can we expect from Huawei in H2 2025?
A. Huawei plans to launch new devices, including the Mate 80 series and Mate XTs foldables, which may help sustain revenue growth and possibly improve profitability.
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