Huawei has a new role model in Google

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If the US hadn’t meddled in Huawei’s phone business in 2019 and 2020, there is little doubt that the company would currently be the largest smartphone maker in the world. On May 16, 2019, the US added the company to its entity list and banned it from accessing its US supply chain, on which it had spent $ 18 billion the previous year. The company was also prevented from using Google’s apps, including the licensed version of Android.

Huawei is switching from hardware to software as it appears to be the next Google

Exactly a year later, the US made a change to its export rules that ban global foundries using American technology to supply chips to Huawei without a license. This was obviously the straw that broke the camel’s back as the US essentially prevented the Chinese manufacturer from buying any of TSMC’s state-of-the-art 5nm Kirin chips that it had designed itself. Huawei eventually sold its Honor subunit to keep it out of US bans, and this year Huawei could become the seventh largest phone operator in the world.

CNBC reports that Huawei launched some new cloud computing products yesterday that make it compete with China’s Alibaba. In a press release released on Sunday, Huawei said its focus on the cloud “should ultimately increase the share of our software and services business in our overall revenue mix.” For example, last week Arcfox launched a car with a cockpit equipped with Huawei’s HarmonyOS, the software Huawei is relying on to replace the Huawei Google licensed version of Android on its phones.

Neil Shah, Research Director at Counterpoint Research said, “Huawei doubles in moving to a software / cloud and services company.” He notes that the company is “unable to source critical semiconductor components and related technologies from the states” thanks to US restrictions on Huawei. According to Shah, Huawei’s focus has shifted from hardware to software, “and with that effort, it becomes like Google.”

According to Huawei, various products can be operated with HarmonyOS, from smartphones to televisions to cars. Will Wong, IDC research manager, said, “The smartphone business is facing challenges. They have another mobile platform to use HarmonyOS on. The car could be a great mobile platform for HarmonyOS to use and use.

Will says the U.S. doesn’t have an easy choice with Huawei as it has already blocked the company’s U.S. supply chain and chip shipments. It will be more difficult for the US to play around with software, he says. “It will be better protected when it comes to geopolitics from the US,” said Wong.

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