Huawei, the Chinese tech giant, has thrown down the gauntlet in the global smartphone arena. On Tuesday, the company unveiled its Mate 70, a flagship device boasting a fully homegrown operating system – HarmonyOS Next – a pivotal moment in its ambitious bid to break the stranglehold of Western tech giants like Apple and Google. For years, iOS and Android have reigned supreme, but Huawei aims to disrupt this duopoly with its latest offering.
This launch represents a remarkable turnaround for Huawei. The company has endured significant setbacks due to stringent US sanctions, which severely hampered its access to global supply chains and US-made components. However, Huawei has not only survived but has also experienced a resurgence, evidenced by soaring sales figures. The pre-orders for the Mate 70 alone have already surpassed three million, according to the company’s online platform, though this doesn’t translate directly into guaranteed sales.
The Mate 70 isn’t just any smartphone; it’s powered by an advanced, domestically produced chip, showcasing China’s growing technological prowess. “The search for a viable, scalable mobile operating system largely free of Western company control has been a lengthy one in China,” notes Paul Triolo, a Partner and China and Technology Policy Lead at Albright Stonebridge Group. He sees the Mate 70 as proof that Chinese tech firms can “persevere” in the face of immense pressure.
However, the road ahead is paved with challenges. Unlike a previous HarmonyOS iteration which leveraged Android’s open-source code, HarmonyOS Next demands a complete overhaul of apps, requiring developers to rebuild their software from the ground up. This presents a significant hurdle. Gary Ng, a senior economist at Natixis, highlights this, saying, “While Chinese firms may be willing to contribute to Huawei’s ecosystem, challenges remain in offering the same app variety and functionality to global consumers.” The cost of this adaptation is also considerable; one third-party agency in China quoted a price of two million yuan ($275,500) to adapt a single foreign app, according to Rich Bishop, co-founder and CEO of AppInChina.
The geopolitical backdrop adds another layer of complexity. Huawei has been at the center of a bitter tech rivalry between the US and China, with US officials alleging its equipment could be used for espionage – accusations Huawei vehemently denies. The sanctions imposed since 2019 initially crippled its smartphone production. This rivalry, experts suggest, is likely to intensify under the current political climate. Toby Zhu, a senior analyst at Canalys, points out that Huawei’s success isn’t solely its own doing but also a reflection of a broader Chinese push for technological self-reliance. The Mate 70’s success will be a critical indicator of the effectiveness of this national strategy.
Despite facing significant headwinds, Huawei remains undeterred. The company shipped over 10.8 million smartphone units in the third quarter, capturing a 16% share of the Chinese market, according to Canalys. While the Mate 70’s price remains undisclosed, its predecessor launched at $750, a far cry from the exorbitant $2,800 price tag of Huawei’s recently unveiled triple-folding Mate XT. The question remains: will developers globally invest the substantial resources required to build apps for HarmonyOS Next? Huawei’s long-term success depends heavily on attracting developers and establishing a robust app ecosystem capable of competing with the established giants. To achieve this, as Triolo emphasizes, Huawei must continuously improve the software, provide robust developer support, and convincingly demonstrate its unwavering commitment to the long-term growth of the HarmonyOS ecosystem.
