Nvidia has acknowledged the growing competition posed by China's Huawei, despite ongoing U.S. sanctions that have restricted Huawei's access to essential technology. In its recent annual filing, Nvidia listed Huawei as a significant competitor across various sectors, including chips, cloud services, computing processing, and networking products. This statement reflects the intensifying rivalry between the two tech giants as Huawei makes a notable return to the smartphone market.
Huawei typically publishes its annual reports in March, and the latest figures indicate a remarkable recovery for the company. After experiencing a revenue plunge of nearly 29% in 2021 and barely any growth in 2020, Huawei reported a year-on-year revenue increase of 17%, reaching 251.5 billion yuan ($34.51 billion) in 2023. Although this figure remains just over half of what the company generated at its peak in 2020, it marks a significant rebound for the organization.
The resurgence can be attributed to the successful launch of the Mate 60 Pro smartphone in China, which garnered considerable attention and sales. Additionally, Huawei introduced the Mate 70 smartphone series, featuring its first fully self-developed operating system, HarmonyOS NEXT. These developments signal Huawei's determination to innovate despite facing substantial barriers due to U.S. sanctions imposed since 2019.
These sanctions have severely limited Huawei's access to advanced technologies from American suppliers, including critical components like 5G chips and software such as Google's Android operating system. The U.S. blacklisted Huawei for national security reasons, prompting concerns about its global competitiveness.
Nvidia's CEO Jensen Huang commented on the competitive landscape in China, stating, "There's a fair amount of competition in China." His remarks highlight Nvidia's recognition of Huawei's resurgence and the implications it may have for the tech industry at large.
As Huawei continues to innovate and expand its product offerings, its revenue exceeded 860 billion yuan ($118.27 billion) in 2024, reflecting a dramatic 22% jump from the previous year. This growth signifies Huawei's resilience and strategic pivot in an increasingly competitive market.
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