Huawei's revenue growth slowed dramatically to just 2.2% in 2025, reaching Rmb880.9bn ($127bn), marking its weakest performance in three years. The Chinese tech giant faced challenges across multiple divisions, with cloud computing revenues declining 3.5% to Rmb32.1bn and smartphone segment growth plummeting to just 1.6%. This slowdown represents a sharp reversal from 2024's 22.4% growth rate.

The company's consumer business struggled particularly as Apple's iPhone 17 launch late last year captured market share. While Huawei maintained its position as China's largest smartphone vendor, overall shipments grew only 1.7% compared to Apple's 7.5% growth. The company's rotating chair Meng Wanzhou acknowledged these challenges while highlighting progress in its HarmonyOS operating system development as a Google Android alternative.

Despite these headwinds, Huawei's automotive unit emerged as a bright spot with 72% revenue growth to Rmb45bn, driven by software chips and infotainment systems for electric vehicles. The company also continued heavy investment in research and development, spending a record Rmb192.3bn in 2025 - more than a fifth of its revenue. This sustained R&D commitment underscores Huawei's determination to advance its semiconductor capabilities despite ongoing US sanctions that have restricted access to cutting-edge technology.