Huawei wants to hold on to smartphones business

Huawei wants to hold on to smartphones business

Beijing, Feb. 15, 2021

Last week, Ren Zhengfei, the founder and CEO of 5G technology leader Huawei Technologies Co, said the company would still be willing to „transfer“ its 5G technology, but it would never give up the smartphone business.

Ren made the statement even though sales of the smartphones – which he called „terminals“ because they are connected to the network – have been on a downward spiral since the U.S. government imposed trade sanctions.

As recently as last summer, Huawei was briefly the world’s largest smartphone seller. By the end of 2020, the smartphone maker had slipped to sixth place. Market research firm TrendForce predicts that in 2021, it will likely drop to

will fall to seventh place.

What role Huawei will play in the future depends on how the company’s Harmony operating system, which first attracted attention in August 2019, is received by customers.

Harmony OS wasn’t just designed for phones – it can network with many other devices. These include tablets, computers and smart TVs. More than 20 hardware companies are already using it. Among them are traditional home appliance makers like Midea, Joyoung and Robam Appliances, which have used it to power products like ovens and smoke hoods.

Huawei also aims to provide the communications equipment and software needed for smart vehicles, and has created a platform for smart car solutions called Huawei HI, based on HarmonyOS.

Nevertheless, a solution to the biggest problem has yet to be found: as a result of U.S. sanctions, sourcing semiconductors has become very difficult. The impact is not limited to smartphones. Huawei’s chip problem is a threat to most of the company’s products. These include consumer electronics, 5G, and automotive communications systems.