Chinese technology conglomerate Huawei has recently introduced its latest flagship smartphone, the Mate 70, which is a significant milestone in the company's quest for technological independence. This new device, priced at a starting point of 5,499 yuan (equivalent to approximately $760), is equipped with the HarmonyOS Next operating system, marking a departure from Android-based applications and showcasing Huawei's commitment to Independent Research and Development software. Richard Yu, the head of Huawei's consumer division, proclaimed the Mate 70 as the "most powerful phone" in the Mate series during its launch event on Tuesday, emphasizing the company's innovative spirit with the statement, "We have always been copied but never surpassed." He also revealed plans for all forthcoming Huawei smartphones and tablets to be powered by their proprietary operating system starting from the next year.
The Mate 70 is the successor to the Mate 60 series, which had surprised industry insiders with its advanced chip technology, despite the United States' extensive efforts to limit China's access to foreign semiconductor technology. According to Lucas Zhong, a research analyst at Canalys, the Mate 70 is a "critical step" in Huawei's software evolution. He highlighted that moving away from the Android ecosystem is "essential for Huawei to maintain momentum in the premium segment, solidify consumer loyalty, and attract potential platform switchers." The Mate 60 Pro's launch in August 2023 had already become a symbol of the tech rivalry between the US and China, and it has also reignited interest in Huawei's high-end smartphone offerings.
Canalys' data indicates a remarkable turnaround for Huawei in the Chinese market for smartphones priced above $600, with its market share increasing from 11% in the third quarter of 2022 to 33% in the same period this year. In contrast, Apple's market share in the same high-end segment declined from 72% to 52% over the same timeframe. Huawei, once the world's second-largest smartphone manufacturer, has been grappling with survival since the imposition of US export restrictions in 2019. The company's struggles led to the sale of its budget mobile brand, Honor, leaving it in a precarious position.
The first iteration of HarmonyOS, which was compatible with Android-based applications, was launched in August 2019, following Huawei's placement on a US trade blacklist that prohibited American companies from selling technology and software to the Chinese firm without a license. This ban prevented entities like Google from equipping new Huawei devices with its version of the Android OS. However, Huawei has since dedicated its resources to developing a fully homegrown platform capable of competing with Western standards. Major Chinese tech companies have reportedly joined this initiative, hiring developers to create apps that are compatible with HarmonyOS.
Eric Xu, then-rotating chairman of Huawei, stated in April, as per a post on the company's official WeChat account, "When we migrate … tens of thousands of other apps from the Android ecosystem to HarmonyOS, our HarmonyOS will be truly built and truly become the world’s third mobile operating system in addition to Apple’s iOS and Google’s Android." He outlined a strategy to "first build the HarmonyOS application ecosystem based on the Chinese market and then promote it country by country in the future and gradually promote it to the world." On Saturday, Xu announced that Huawei is targeting the development of 100,000 applications for its operating system over the next year, emphasizing the importance of a large app and device ecosystem. He pointed out, "If no one uses it, no matter how advanced the operating system is, it will have no value," according to a WeChat post.
Mengmeng Zhang, a senior analyst at Counterpoint Research, anticipates that the Mate 70 series will achieve over 10 million shipments throughout its lifecycle. She added that "It will take time for Huawei to expand the developer community and establish a competitive … ecosystem." This underscores the challenges and the long-term vision that Huawei has in building a robust software ecosystem that can stand alongside the established platforms of Apple and Google.
Huawei's Mate 70, with its HarmonyOS Next, signifies a bold move towards self-reliance in software development, a strategy that is crucial for the company to navigate the complex geopolitical landscape and the potential for further sanctions from Washington. This new chapter in Huawei's journey reflects its resilience and determination to innovate and lead in the global smartphone market.
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