Huawei plots China smartphone revival with mobile operating system upgrade

Huawei on Friday introduced the most recent model of its cell working system HarmonyOS 4 and an enhanced A.I assistant, because the embattled big ramps up efforts to re-establish energy for its smartphone business.

The Shenzhen-based telecoms agency is making an attempt to get well from U.S. sanctions courting again to 2019, which minimize it off from key applied sciences corresponding to semiconductors, like 5G chips and software program. The transfer crippled its smartphone business globally, demoting it from as soon as being the primary participant.

American restrictions minimize Huawei off from Google’s Android cell working system, which destroyed Huawei’s smartphone business outdoors of China.

In 2019, Huawei launched its personal working system referred to as HarmonyOS, in a bid to exchange Android. The firm has been growing new variations of the system ever since, with a watch to regain some market share in smartphones.

The Friday launch of HarmonyOS 4 highlights the corporate’s ambition to regain energy for its smartphone business.

“Huawei’s flagship smartphones are making a comeback,” stated Yu Chengdong, CEO of Huawei’s client business and clever automotive resolution business teams, throughout the Huawei Developer Conference 2023 on Friday.

Since 2019, Huawei has centered on making an attempt to regain market share in China, discovering some success. Huawei’s market share jumped to 13% in China within the second quarter of the yr, up from 7.3% throughout the identical interval of 2022. The firm’s smartphone shipments grew by 76% year-on-year.

Huawei’s technique has turn into extra refined, because it appears to compete within the premium section of the smartphone market, fairly than throughout all sectors.

“Huawei’s smartphones took the second spot in the high-end segment. So we are making a comeback with vengeance,” stated Yu.

In the section of telephones priced greater than $600 in China, Huawei’s share jumped to 18.4% within the second quarter versus 6.7% in the identical interval in 2022, in accordance with IDC.

Huawei’s high-end focus is sensible, as Chinese shoppers are on common keen to pay extra for smartphones. The firm launched its Mate X3 foldable this yr, and that machine, together with the flagship P60, helped the corporate increase its premium section share.

Despite being minimize off from crucial international chips, Huawei plans to re-enter the 5G smartphone market by the top of this yr, in accordance with Reuters. The news company reported that Huawei ought to have the ability to procure 5G chips domestically.

5G refers to next-generation cell web know-how. Most high-end telephones are ready to connect with 5G networks, which promise super-fast web speeds. Huawei’s flagship units have been lacking this function due to U.S. sanctions.

“It totally makes sense for Huawei to focus on the premium segment. It’s not only that the high-end segment was more resilient in the gloomy Chinese market, but Huawei could also leverage its premium brand name in China, which other Chinese vendors were still striving for,” Will Wong, analysis analyst at IDC, instructed CNBC.

“Furthermore, premium products could potentially generate more favorable revenue and profitability.”

Part of Huawei’s high-end technique revolves round HarmonyOS, an working system it says is designed for smartphones and different units like wearables and TVs. The firm goals to create unified software program throughout a number of client electronics classes, very like Apple.

The Chinese tech big stated that it’ll convey “a HarmonyOS with even more intelligent and personalized experience.” HarmonyOS at the moment runs on greater than 700 million units, together with smartphones, watches and tablets, the corporate stated.

Huawei stated that the brand new model of Huawei’s AI voice assistant Celia, which gives assistant options on good units, has been educated with Huawei’s Pangu AI mannequin to enhance productiveness in life and at work. In July, Huawei launched Pangu 3.0, because it seeks to capitalize on the AI increase and ChatGPT frenzy.

At least 200 million cell phone customers work together with Celia each month, stated Huawei.

“You can interact with Celia by not just voice but also texts, pictures, documents and so on. You can also type to interact with Celia if it’s not the right time to talk. Dialogues between users and Celia can be more natural and intuitive,” stated Jia Yongli, director of client business at Huawei.

Celia may also carry out a variety of duties, corresponding to writing summaries, translation, writing emails and official paperwork, stated Jia.

Huawei additionally stated {that a} new set of options will likely be obtainable to invited customers in late August.

Still, Huawei’s smartphone rejuvenation is more likely to be confined to China, which accounted for 89% of its handset shipments within the second quarter, in accordance with IDC.

That’s as a result of Huawei’s telephones nonetheless lack 5G and HarmonyOS does not have the important thing apps, corresponding to Google, folks outdoors of China are used to utilizing.

“It’s not an easy task to regain ground overseas,” Wong stated, suggesting many customers have switched to different cellphone manufacturers as a result of Huawei’s lack of key options.

“It would take time for Huawei to get the users switched back even if it could address the key pain points of its products in the overseas market now.”