SHANGHAI, China (AFP) — Chinese tech giant Huawei’s revenue growth slowed last year, its annual report showed Tuesday, as sales of the company’s consumer devices plateaued against a backdrop of sluggish domestic consumption.

Huawei’s revenue came in at 880.9 billion yuan ($126 billion) in 2025, up 2.2 per cent from the previous year’s 862 billion yuan, the company said.

But the figure was a fraction of the 22 per cent jump in revenue reported in 2024, reflecting in large part the slowing growth of the company’s consumer business.

While Huawei regained its position as the top seller of smartphones in China last year, the overall domestic market shrank in 2025, according to the United States-based International Data Corporation.

Huawei reported 344.5 billion yuan revenue from its consumer business in 2025, up only 1.6 per cent from the year before compared to the 38.3 per cent jump reported in 2024.

“Our consumer business worked to overcome formidable challenges,” rotating chairwoman Meng Wanzhou said in Tuesday’s report, noting also that Huawei was “moving toward a future that is full of uncertainty”.

Revenue growth from telecommunications infrastructure sales also slowed in 2025, rising 2.6 per cent on-year compared to 4.9 per cent in 2024.

The company attributed this to “the impact of industry investment cycles”.

Huawei has in recent years been at the centre of a standoff between China and the United States after Washington warned its equipment could be used for espionage by the Chinese government, an allegation Huawei denies.

Sanctions since 2019 have cut the firm’s access to US-made components and technologies, forcing it to diversify its growth strategy.

Huawei’s research and development expenditure rose in 2025 to 192.3 billion yuan — 21.8 per cent of its total revenue — as the company poured resources into building computing products intended for AI use.

Net profit for 2025 was 68 billion yuan, up 8.7 per cent from 2024’s 62.6 billion yuan.