Huawei reportedly considering imposing fees on mobile OS developers

After being placed on the US trade blacklist in 2019, Huawei Technologies was forced to scramble to develop domestic alternatives to stay in business. Now, several years later, these domestically produced products are reportedly profitable enough to provide a source of revenue for the company.

Huawei released its mobile operating system, HarmonyOS, in 2019, shortly after the U.S. put the company on a trade blacklist and cut off access to Google's Android. Huawei based early versions of HarmonyOS on Android, but the latest version of the operating system will not be able to run Android apps. It may appear on Huawei smartphones later this year.

HarmonyOS is rapidly penetrating China's smartphone market. In just under five years, it has become the second most used operating system in China, according to a recent report from market research firm Counterpoint. HarmonyOS captured 17% market share in the first quarter of this year, surpassing Apple's iOS at 16%. Google's Android remains by far the most popular mobile OS, with a 68% market share.

This rapid growth may have given Huawei the confidence to start collecting royalties: Huawei doesn't currently charge developers a fee for using HarmonyOS, but the tech company is now considering charging developers 20% of revenue, Bloomberg reports.

Both Apple and Google charge developers a commission of between 15% and 30%.

A Huawei spokesman said the Bloomberg report was false but did not provide further details.

Huawei's recent resurgence has been primarily focused on hardware, not software. The Shenzhen-based tech company's smartphone business has boomed since it launched its Mate 60 series of phones last August, powered by domestically-made chips despite U.S. sanctions. Its latest high-end smartphone, the Pura 70, also sold out quickly after its launch in April.

According to data from market research firms, Huawei's return has led to a gradual decline in the iPhone's market share in China.

Huawei is reportedly planning to release the Mate 70 around September or October.

Update June 18, 2024: This story has been updated with comment from Huawei.

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