Sarah Travers
In the fast-paced world of technology, the resurgence of Huawei stands out as a phenomenal turnaround. Previously hampered by international trade sanctions, Huawei has rebounded with vigor, rapidly regaining its status as a powerhouse in the tech industry.
Central to Huawei’s resurgence is the development and adoption of its proprietary operating system, Harmony OS. This strategic move was essential after the US trade sanctions prevented American companies from supplying Huawei with crucial technology and software. Today, Harmony OS is operational on over 900 million devices worldwide, a testament to Huawei’s rapid progress and capability to match and surpass decades of Western technological advancements within just ten years.
Beyond smartphones, Huawei has diversified its portfolio. The company entered the electric vehicle market last year, unveiling an electric sedan that challenges Tesla’s dominance. Additionally, Huawei is carving out a significant niche in artificial intelligence (AI). Its AI solutions, powered by Ascend processors, are reportedly more efficient at training large language models than those offered by global leaders, highlighting Huawei’s innovative edge.
The resurgence is most visible within Huawei’s smartphone business, where sales of its flagship devices have increased by 72% in the initial months of 2024. This surge in sales is a robust response to past predicaments, which once led analysts to predict a bleak future for Huawei’s smartphone division.
Moreover, Huawei recently launched the Mate 60 Pro, a smartphone that incorporates a highly sophisticated processor. This release surprised many industry experts, raising questions about how Huawei managed to secure such advanced technology given the comprehensive US efforts to restrict China’s access to crucial chip technology.
Financially, Huawei has demonstrated remarkable strength. The company’s net profits increased by 564% to $2.71 billion in the first quarter of 2024, accompanied by the quickest revenue growth seen in four years. This financial success is driven by Huawei’s expanding consumer business and its foray into new sectors like smart car components.
In the Chinese smartphone market, Huawei’s revival is altering competitive dynamics, particularly affecting Apple. Data from Counterpoint Research shows Huawei nearly matching Apple in the premium segment. Apple’s market leadership in China diminished from nearly 20% in early 2023 to 15.7% in the following year, while Huawei’s share rose sharply from 9.3% to 15.5%. This market shift is forcing competitors like Apple to reconsider their pricing strategies to stay competitive.
Huawei’s impressive comeback is not merely a story of overcoming adversity but a demonstration of strategic innovation and resilience that has reverberated throughout the tech industry. With significant advancements in AI, smart vehicles, and a robust smartphone market presence, Huawei is not only back in the game but is also setting new benchmarks for what is possible in the tech world. As Huawei continues to expand its influence, it reshapes the landscape of global technology, signaling a new era of competition and innovation.
