Huawei Technologies Co.’s profit rose for the fourth consecutive quarter, a sign the Chinese tech company is taking market share from Apple Inc. and other smartphone rivals.

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The Shenzhen-based company reported net profit of 19.6 billion yuan ($2.7 billion) in the March quarter, up 564%, according to a filing from Huawei’s holding company posted to the website of the National Interbank Funding Center in China.

Sales in the first quarter rose 37% to 178.5 billion yuan. The company did not provide a sales breakdown for various business segments in its filing.

The phenomenal growth in earnings underscored Huawei’s resurgence in spite of US sanctions. The company’s smartphone shipments surged 70% in the first quarter, according to research firm Counterpoint, after the company made an unexpected comeback last year with a new 5G phone powered by an advanced made-in-China 7-nanometer chip despite US sanctions.

As a stark contrast, Apple’s iPhone sales in China fell 19% during the March quarter, Counterpoint estimated.

Earlier this month, Huawei unveiled its new Pura 70 smartphone series with a slightly enhanced chip, showcasing its capability to sustain production of advanced semiconductors and ramp up pressure on Apple on its home turf. The Pura 70 series sold out within two days of their launch, according to market checks conducted by Jefferies analysts led by Edison Lee.

Huawei is also making progress on AI chips with its Ascend GPU. Nvidia Corp. Chief Executive Jensen Huang has called the Chinese company a formidable rival.

Huawei steals market share from Apple despite Western sanctions

Huawei released a new high-end smartphone in August made largely with home-grown microchips -

Huawei’s profits have surged more than six-fold after the Chinese technology champion overcame Western sanctions to steal market share from Apple.

The Shenzhen-based company reported a 19.6bn yuan (£2.1bn) profit in the three months to March, up 564pc on the same period a year ago.

This comes despite facing US export controls and bans on overseas sales of its networking equipment in the last year, including in the UK.

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The company released a new high-end smartphone in August that was made largely with home-grown microchips.

This proved to be a surprise hit among Chinese consumers and helped Huawei squeeze sales of Apple’s iPhone in the Far East.

It has also been developing advanced artificial intelligence chips in an attempt to compete with Silicon Valley giant Nvidia, which has seen its sales to China curbed by the Biden administration.

China has invested heavily in catching up to the US and Taiwan in advanced semiconductor production, reaping rewards for companies like Huawei that have struggled to get hold of foreign-made chips.

Huawei said revenues had risen by 37pc in the quarter to 178.5bn yuan. The sales came in the critical Chinese New Year period when shoppers typically spend heavily on electronics.

This marks a stark reversal in Huawei’s fortunes after chief executive Guo Ping said in 2020 that the company’s goal was “survival” after “nonstop aggression from the US government”.

In December, the company said it was “back on track”, claiming it had weathered the storm after reporting an increase in annual revenues.

According to research firm Counterpoint, Huawei’s smartphone sales in China rose by 70pc in the first quarter of the year, putting it almost level with Apple.

By comparison, Apple’s sales are believed to have fallen sharply. The US tech giant is expected to reveal the scale of its China sales fall on Thursday when it reports results for the first three months of the year.

China has discouraged government employees from bringing foreign-made devices to work.

Huawei is also investing heavily in smart car technology, seeking deals with major carmakers.

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Apple (AAPL) has faced several challenges recently, including a loss of market share to Huawei in China. According to data from Counterpoint Research, iPhone sales fell over 19% within the first 3 months of 2024.

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