Huawei Devices Approach a Billion Mark Amid Intense Apple Competition

Huawei Technologies Co. is nearing a significant milestone with nearly a billion active consumer devices, highlighting its competitive stance against Apple Inc. in China despite facing US sanctions. As of now, around 900 million Huawei devices operate using its in-house Harmony operating system, showing a marked increase from a few months earlier, according to Richard Yu, the chairman of Huawei's consumer business. He shared these details during an annual developer forum, noting that premium Huawei smartphone sales surged by 72% in the first five months of 2024.

This robust growth is attributed to the launch of the Mate 60 Pro, which features a 7-nanometer processor—a technological feat that surprised US officials. The successful rollout has significantly boosted Huawei’s profits, helping it gain market share from Apple and other Chinese competitors. Yu expressed optimism about HarmonyOS's future, suggesting it has now firmly secured its place in the market.

Looking ahead, Huawei plans to unveil the Mate 70 by the end of the year, running on the new HarmonyOS Next, which will further distance the company from Google’s Android. A beta version for consumers is expected to be available around August. Over recent years, Huawei has extended HarmonyOS's reach beyond smartphones to include devices like watches and TVs. The company shipped about 11 million wearables in the first quarter, surpassing Samsung, according to IDC, which helped HarmonyOS overtake Apple’s iOS in Chinese market share during the January-March period, as per Counterpoint Research.

The increasing popularity of Huawei’s phones remains the main driver behind HarmonyOS's success. In light of the growing user base, Huawei is exploring ways to monetize HarmonyOS, such as taking a cut of in-app purchases. However, Tencent Holdings Ltd.’s WeChat may be an exception to this strategy.

On the artificial intelligence front, Huawei is advancing with its Ascend GPU, part of a broader chip portfolio that has led Nvidia's CEO, Jensen Huang, to recognize Huawei as a serious competitor. Various Chinese companies, including Huawei, are developing local alternatives to powerful AI accelerators, which the US has restricted from reaching China. This effort aligns with Beijing's broader goal of catching up to the US in AI and chipmaking capabilities.

Richard Yu revealed that Huawei’s Ascend processors are 1.1 times more efficient in training AI models compared to mainstream options, although he did not specify which competitors he was referring to. Currently, Huawei has established three AI data centers powered by Ascend chips in China, aiding local firms in developing and hosting AI services.