Strung severely by the sanctions imposed on it by the United States, the Chinese tech giant Huawei has recently reported losses in business. However the company is now trying to claw back from the hit because of the US sanctions to its mobile phone business and is set to launch its new Harmony operating system for smartphones on June 2.
Analysts say this is the largest move by the company to recover from the damages to its smartphone business caused by the US sanctions.
One of the major impacts of the US sanctions was the losing of access of the company to US technology which included Google’s Android system that powered all its smartphones. Since the sanctions were imposed, the company was unable to launch any new mobile handsets because of the lack of an appropriate operating system and this move now will mean that Huawei will not be dependent on Android any longer and can use its own operating system on its smartphones. The sanctions also meant that Huawei was unable to gain access to Google Mobile Services and Google’s technical support on its new smartphones – which was critical because these are the bundle of developer services which forms the basis of most Android apps.
The company however did not make it clear whether it would be launching new smartphones at the same time or whether the company would be providing updates for its existing phones or how fast the roll out of the new operating system will be.
However some experts pointed out that the company’s new HarmonyOS will only be able to partially mitigate the hit of the sanctions which were imposed in 2019 as those sanctions had also barred the company from accessing critical technology that originated in the United States which severely impeded Huawei’s ability to design its own chips and source components from outside vendors.
With a 4 per cent share of the global smartphone market currently, Huawei is placed sixth in the global smartphone making ranking even though it was once the largest smartphone maker of the world.
While imposing the sanctions on the company, the previous Trump administration had argued that the Chinese telecommunications giant was a major threat to the national security of the country. Such charges have been denied by Huawei.
According to reports quoting an internal memo of the company, a call on the company’s staff to “dare to lead the world” in software was given by Huawei CEO Ren Zhengfei this week, in the efforts of the company to move into business sectors and industries where the US sanctions would not have an impact.
It said that the company will need to take a more “open source” approach to development and should try to attract more software experts from overseas as part of the pivot.
(Adapted from MoneyControl.com)