SWOT Analysis of Huawei

UPDATED: Huawei SWOT Analysis Considerations to Add as of 2025

This SWOT Analysis of Huawei was first produced in 2017, so we see fit to add new considerations for a 2025 audience.

Huawei has demonstrated remarkable resilience amid global challenges. US sanctions disrupted its supply chain, especially for chips and software, forcing Huawei to divest its Honor brand and develop indigenous alternatives. Despite these setbacks, Huawei’s carrier and enterprise divisions have grown, offsetting declines in its consumer business. By 2025, Huawei regained the top spot in China’s smartphone market, holding a 20% share, thanks to government subsidies and strong Pura X sales.

Huawei’s strengths now include robust R&D capabilities, a leading position in 5G technology, and a growing presence in cloud and AI markets. The company’s global brand remains influential, especially in Europe, Africa, and Asia. Huawei’s talent development and incentive mechanisms have improved innovation and employee retention. Its diverse business layout and stable partnerships with operators worldwide support continued growth.

However, weaknesses persist. US sanctions still limit access to advanced components, affecting product competitiveness and profit margins. High R&D costs strain finances, and Huawei’s broad business focus dilutes resources. Compliance risks remain high due to varying international regulations and ongoing scrutiny.

Opportunities and Threats to Huawei approaching 2030 and Beyond

Opportunities have expanded with the global rollout of 5G, digital transformation across industries, and China’s “New Infrastructure” policy supporting cloud and IoT growth. International cooperation and partnerships offer further market expansion.

Threats remain from fierce competition with Ericsson, Nokia, Apple, and Samsung. Geopolitical tensions, regulatory barriers, and negative perceptions of Chinese products continue to hinder global expansion. Rising labour and material costs, as well as economic slowdowns, also threaten profitability. Huawei must continue to innovate, optimise investment, and strengthen compliance to maintain its global position.

Huawei Strengths

According to Qing & Ba, Zehou & Qing (2016), Huawei is known throughout the world for its dynamic properties in the electronics sector. This brand awareness has been driven further by the organisation’s strategic marketing (Lu, 2016). Additionally, Huawei is growing tremendously compared to other tech companies (Xia & Gan, 2017). Xuesong (2016) notes that Huawei’s products are relatively cheaper compared to those of competitors like Samsung and Apple, and hence, their affordable draws numerous consumers.

Besides, the firm is innovative and has come up with many differentiated products in the market (Lu, 2016); differentiated products increase value to consumers, which increases customer satisfaction. Finally, Huawei’s strategic collaboration with global partners such as Google and IBM (International Business Machine Corporation) (Cao, 2017), increase the organisation’s access to important resources and markets, which will contribute to sustainability in the long run.

Weaknesses

Lopez & Zhang (2017) affirm that insufficient capital budget limits the ability of Huawei Company to compete internationally. Fighting competition is expensive and needs a lot of capital investment.

Additionally, Huawei products are cheap; people perceive expensive products to be quality and original. For example; many people have higher confidence in Apple products compared to Huawei products because the former’s products are more expensive (Arora, 2015).

Furthermore, in a study to evaluate the success of sports marketing in the Chinese market, Lu (2016) found out that one of the hindrances to successful marketing lies in the fact that many consumers in China believe that Huawei products are inferior. However, the organisation has attempted to solve this problem by creating high-end devices, which are of superior quality. Moreover, the use of Lionel Messi, a prolific footballer, in the recent marketing campaign increases Huawei’s products credibility.

Regardless, another weakness facing the organisation is that the brand is mainly known in China, while its global presence is being hindered by numerous and well-established firms (Lu, 2016). By using an international footballer in marketing, the company aims to increase its global presence. Finally, Huawei is highly affected by high employee turnover which puts business continuity at risk (Cao, 2017).

Opportunities

China is relatively labour-intensive given its large population (Arora, 2015). This offers Huawei an opportunity to cut down on production and operational cost, which, in turn, generates higher profit margins. The resulting low cost of production also ensures that the firm can increase the quality of its products without compromising on its margins, which will position it competitively in the global market.

Moreover, the Chinese Government supports local manufacturers by giving them incentives to produce goods for export (Xuesong, 2016). Huawei has an opportunity to benefit from these government incentives to produce products that are competitive in the global markets. According to Xuesong (2016), incentives stimulate output and facilitate growth.

Moreover, Chinese manufacturers prefer majoring in e-commerce for business sales than constructing brick and mortar stores (Xia & Gan, 2017). However, competitors such as Samsung sell their products both physically and online, which diversifies their source of income. Therefore, Huawei should also consider setting up physical stores both in China and its global markets.

Threats

Lopez & Zhang (2017) point out that there is stiff competition in the mobile devices manufacturing sector from both established and new firms. Products like Xiaomi and ZTE target the same market as Huawei and are competitively priced.

Additionally, import tariffs in China are relatively low compared to other countries, which this gives foreign entities an opportunity to import competing products. Competing locally with international brands is challenging because the international products might dominate the market because they are often well-known (Lopez & Zhang, 2017).

Moreover, the ease with which Huawei penetrates international markets is hindered by the different regulations that exist in various countries (Lopez, 2017). Some countries are immensely strict on foreigners to promote local industries. Finally, Chinese products are often synonymous with low quality (Akdeniz & Kara, 2014). While this perception does not apply to all products, this image has continued to affect Huawei’s penetration in the international markets.

Regardless, most Chinese organisations (Akdeniz & Kara, 2014), such as Huawei, have embarked on developing quality products, which will improve the perception about Made in China.

Summary of Huawei SWOT Analysis

Huawei is a global leader in electronics and telecommunications, known for rapid growth and strong brand recognition. Strategic marketing and affordable products attract many consumers, especially compared to higher-priced competitors like Samsung and Apple. Huawei’s innovation drives differentiated products and customer satisfaction. Partnerships with global firms such as Google and IBM expand its access to resources and markets, boosting long-term sustainability.

Despite strengths, Huawei faces several weaknesses. Limited capital restricts its international competitiveness. The perception of lower quality due to affordable pricing persists, especially against premium brands. Many Chinese consumers still view Huawei products as inferior, though high-end devices and celebrity endorsements aim to change this image. Huawei’s brand remains stronger in China, with global presence challenged by established international firms. High employee turnover also threatens business continuity.

Huawei enjoys significant opportunities. China’s large, low-cost workforce reduces production expenses and increases profit margins. Government incentives support exports and stimulate growth. The company can further benefit by establishing physical stores, diversifying beyond e-commerce, and improving global reach. Expansion into 5G, cloud, and AI markets presents further growth prospects.

However, Huawei faces intense competition from established and emerging brands like Xiaomi and ZTE. Low import tariffs in China allow foreign brands to compete locally. Regulatory barriers in many countries hinder international expansion. Negative perceptions of Chinese products also affect global market penetration. Ongoing compliance risks and geopolitical tensions, especially US sanctions, continue to threaten Huawei’s international operations and supply chain stability.

References for SWOT Analysis of Huawei

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• PESTLE analysis (2025) ‘SWOT Analysis of Huawei’, PESTLEanalysis.com. Available at: https://pestleanalysis.com/swot-analysis-of-huawei/ (Accessed: 1 June 2025).
• ECIPE (2023) ‘How Huawei weathered the storm: resilience, market conditions or failed sanctions?’, ECIPE. Available at: https://ecipe.org/publications/how-huawei-weathered-the-storm-resilience-market-conditions-or-failed-sanctions/ (Accessed: 1 June 2025).
• YouTube (2025) [Title of the video]. Available at: https://www.youtube.com/watch?v=zM-9HHLN6HQ (Accessed: 1 June 2025).
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• Studocu (2025) ‘SWOT analysis on Huawei’, Studocu. Available at: https://www.studocu.com/en-gb/document/city-university-of-london/law/swot-analysis-on-huawei/17384281 (Accessed: 1 June 2025).
• SWOT & PESTLE.com (2025) ‘Huawei BCG Matrix’, SWOT & PESTLE.com. Available at: https://swotandpestle.com/product/huawei-bcg-matrix?language=en-gb (Accessed: 1 June 2025).
• Extensia (2025) ‘Huawei plans 10 major tech trends by 2025’, Extensia. Available at: https://extensia.tech/huawei-plans-10-major-tech-trends-by-2025/ (Accessed: 1 June 2025).