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Huawei nears 1 billion mobile devices as competition with Apple intensifies

Huawei nears 1 billion mobile devices as competition with Apple intensifies

 


(Bloomberg) — Huawei Technologies Co. is approaching 1 billion active consumer devices, highlighting the U.S.-sanctioned company’s challenge to Apple Inc. in the crucial Chinese market.

Richard Yu, chairman of Huawei's consumer business, said there are now about 900 million Huawei devices running its company-built Harmony OS, a big increase from a few months ago. He told attendees at the company's annual developer forum on Friday that sales of Huawei's premium smartphones had grown 72% in the first five months of 2024.

The figures reflect the phenomenal growth Huawei's phones have enjoyed since it rolled out the Mate 60 Pro, which was equipped with a 7-nanometer processor that Washington officials believed Chinese companies were not equipped to develop. Business has boomed since then, with Huawei increasing its profits more than fivefold in the March quarter and taking market share from Apple and Chinese rivals.

“No one can extinguish the light of the stars in the sky. Today, the future of HarmonyOS has been decided. Enjoy the shining galaxy that belongs to us,” Yu told the audience.

Yu said Huawei plans to launch a successor to its flagship smartphone, the Mate 70, at the end of the year. The phone will likely run HarmonyOS Next, which will sever its ties with Google's Android. Yu said Huawei plans to release a beta version to consumers around August.

In recent years, Huawei has expanded its HarmonyOS beyond smartphones into a wide range of products, from watches to TVs. The Chinese company shipped about 11 million wearables in the first quarter, surpassing Samsung Electronics, according to IDC. That helped HarmonyOS overtake Apple's iOS in China market share in the first three months of the year, according to Counterpoint Research. But Counterpoint added that the growing popularity of Huawei's phones remains the main driver.

Huawei has become more aggressive in seeking to profit from HarmonyOS as its user base burgeons, considering taking a cut of in-app purchases and underscoring its growing confidence in competing with the iPhone, with Tencent Holdings' WeChat being at least one notable exception.

The company is also making advances in AI with its Ascend GPUs, part of a growing chip portfolio that has led Nvidia CEO Jensen Huang to call Huawei a formidable rival.

Chinese companies including Huawei are developing domestic alternatives to the most powerful AI accelerators made by companies like Nvidia that the U.S. has barred from China, in efforts seen as key to Beijing's broader ambitions to catch up with the U.S. in AI and chip manufacturing.

Yu said Friday that the company's Ascend processors are 1.1 times more effective at training AI models than mainstream products, without naming any specific companies. The company has so far set up three AI data centers in China equipped with Ascend chips to help local companies develop and host artificial intelligence services.

2024 Bloomberg LP

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