Huawei’s fall among the top 5 smartphone suppliers in the world, of course, has not gone unnoticed. Expelled from the network infrastructure, especially 5G, in many countries, the company also found itself struggling in the smartphone market because of its inability to buy parts and components necessary to manufacture these devices. Huawei will not give up, but it has another Plan B in place and, in a very fun way, it is supposed to follow Google’s model when expanding its business to software, cloud and cars.
Although Huawei has some experience in software, it has traditionally been seen as a hardware company. It makes network equipment, both for operators and consumers, in addition to mobile devices. These hardware-based businesses, however, are starting to crumble under the weight of U.S. sanctions against the company and CNBC says Huawei is looking to step up its software efforts in response.
Huawei has already started to develop its own Harmony operating system, which first appeared on smart TVs and IoT devices. The first iteration for smartphones turned out to be more like a revamped Android, but the end goal, at least according to the company, is a completely new mobile platform. Now, it plans to enter the cloud computing market as well as smart cars, two areas in which Google, which is primarily a software and Internet services company, already operates.
This new venture would not only provide Huawei with new business opportunities, but could also help it avoid some of the effects of the United States’ ban. The hardware for these markets tells a different story that may not be covered by these sanctions. At the very least, Huawei and its partners could make their own while staying away from products made in the United States.
It will not be an easy journey for Huawei, however, as it will have to face more established players in these fields, especially in China. Even with Google out of the picture, Huawei will have to compete with Alibaba, China’s king of cloud computing, and with Baidu, which leads the country’s automotive technology market.