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| Huawei focuses on software with Google's ambitions |
With the impact of US sanctions on the hardware business, Huawei is ramping up its efforts in cloud computing and smart cars.
ArcFox, a brand of BAIC Motor Group, launched a vehicle that uses Huawei auto technology.
The car has a cockpit equipped with HarmonyOS, an operating system introduced by Huawei in 2019, and autonomous driving functions.
The Chinese company does not make the cars, but rather focuses on the technology that powers the cars.
Huawei recently launched new cloud computing products to challenge the Chinese leader, Alibaba. He said: Hopefully, focusing on cloud, software, and services will increase overall sales.
These plans focus on the fact that US sanctions against Huawei have led to a drop in smartphone sales as the Chinese giant was blacklisted (physical list) in 2019, restricting its access to some US technology.
Last year, Washington took measures to block the Chinese giant's access to major semiconductor suppliers.
Counterpoint's Director of Research said, “Due to the sanctions in Washington, Huawei is no longer able to purchase semiconductor components and related technologies. As a result, Huawei is paying more attention to software, cloud and services.”
Thanks to this work, Huawei became like Google, which produced the Android operating system used by most smartphones in the world.
The US tech giant is still involved in developing embedded software and has a growing cloud computing business.
According to Huawei, HarmonyOS can run on anything from smartphones to TVs to cars.
IDC Research Director said: “The smartphone industry faces challenges, but Huawei has another mobile platform that HarmonyOS can use and this platform could be a good mobile platform for applying and using HarmonyOS.
In areas like automotive and cloud, Huawei hopes to challenge some of the biggest tech companies in China such as Alibaba, Baidu and Xiaomi.
The Chinese company uses its software to isolate itself from potential US geopolitics and other actions.
Although Washington has managed to block access to the chips, disrupting the software industry can be difficult, and the chips needed for cars require more advanced manufacturing processes than smartphones.