Huawei is experiencing one of the most remarkable comebacks in tech history. The Chinese tech giant, at the center of the escalating US-China tech rivalry, now has over 900 million smartphones using its Harmony OS. Richard Yu, chairman of Huawei’s consumer business group, highlighted at a developer forum that Huawei achieved in 10 years what took its European and American counterparts over 30 years, gaining independent control over core operating system technology.
Harmony OS, known as “Hongmeng” in Chinese, was launched in 2019 after Huawei was added to a US trade blacklist, preventing American companies from selling technology and software to Huawei without a license. US officials have long accused Huawei of posing a national security risk, suggesting the Chinese government could use Huawei’s equipment for espionage.
The US ban, particularly barring Google from supplying Android OS to new Huawei devices, severely impacted Huawei’s smartphone business, with some analysts predicting Huawei phones would become obsolete.
However, Huawei is making a significant comeback and expanding into new ventures, including launching an electric sedan last year to compete with Tesla’s Model S and pursuing ambitions in artificial intelligence (AI).
Earlier this year, Nvidia named Huawei a top competitor in AI processor production. Yu stated that Huawei’s AI framework, with its Ascend processors, is 1.1 times more effective in training large language models than mainstream international alternatives, though he did not specify the competitors.
The most notable revival is in Huawei’s smartphone sector, where flagship smartphone sales increased by 72% in the first five months of 2024 compared to the same period last year. This growth highlights Huawei’s determination to regain its position despite stringent US restrictions.
The Mate 60 Pro smartphone gained attention last year when the US government sought information about its advanced processor, which surprised industry experts due to US efforts to limit China’s access to foreign chip technology.
Huawei’s net profit surged 564% to $2.71 billion in the first quarter, following its fastest revenue growth in four years in 2023, driven by consumer segment recovery and new ventures like smart car components. Huawei’s success in the premium smartphone segment in China has impacted Apple significantly.
According to Counterpoint Research, Apple’s market share in China fell from nearly 20% in the first quarter of 2023 to third place with 15.7% in early 2024, while Huawei’s share rose from 9.3% in 2023 to 15.5%. iPhone sales began recovering in May after Apple cut prices in its largest overseas market.
