Huawei profits drop 36% as R&D spending surges
Huawei’s profit for the first half of the year dropped 36% to about 23.8 billion yuan, even as revenue climbed nearly 10% to 467.8 billion yuan. The reason: Huawei shoveled 121.4 billion yuan — over a quarter of its revenue — into research and development. Operating cash flow swung negative, and the company says surging investment aims at long-term independence as smartphone and AI chip sales rebound.
- R&D spending rose 25% to 121.4 billion yuan
- More than 25% of revenue went to research
- Net profit fell to 23.8 billion yuan
- Revenue reached 467.8 billion yuan, up about 10%
- Operating cash flow turned negative
Sources covering this
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