Huawei's profit grows by a whopping 564%, outperfroming competitors like Apple in China

Huawei Technologies reported a remarkable profit growth for the fourth consecutive quarter, reaching 19.6 billion yuan ($3.68 billion) in Q1, a 564 per cent increase from the previous year, according to a report by Bloomberg. The company's sales also grew by 37 per cent, totalling 178.5 billion yuan.

These figures suggest strong performance across multiple sectors. Despite US sanctions, Huawei showed resilience with a 70 per cent increase in smartphone shipments, following the launch of a new 5G phone with a 7-nanometer chip developed in China. In contrast, Apple's iPhone sales in China fell by 19 per cent. Huawei's Pura 70 smartphone series, featuring an enhanced chip, further intensified competition by selling out within two days of release. The new smartphone comes with another 7-nanometer chipset but it is said to be better in heat management and overall performance. 

Huawei is also making strides in artificial intelligence (AI), developing the Ascend GPU, a new AI chip, posing a challenge to industry leaders like Nvidia. Huawei's recent performance demonstrates its ability to withstand external pressures, innovate, and compete effectively in the tech industry, particularly against global leaders like Apple.

Apple will be introducing a new line-up of smartphones later this year under the new iPhone 16 series. This new series is expected to get a much-needed boost in AI-prowess. Apple is expected to introduce the new iOS 18 update at the WWDC event this year. Which is touted to be the biggest iOS update till date, thanks to the AI features it will introduce. Apple is also expected to take on competition in China and the global market by partnering with AI brands like OpenAI or Google for a chatbot.