Huawei says it aims to increase its overseas smartphone market share and expand HarmonyOS globally within one to three years, as Huawei-powered EV sales slow

Your phone's operating system choice could soon expand beyond Android and iOS.

Huawei is refocusing on its smartphone business, aiming to reclaim international market share and expand its HarmonyOS operating system globally within one to three years. This renewed emphasis on phones comes as the company's partnerships in the electric vehicle (EV) sector experience a significant slowdown. The company recently launched its Mate 90 series, featuring its proprietary "LogicFolding" chip, on China's National Day. Huawei's executive director noted that the company, once a leading global smartphone vendor before U.S. sanctions impacted its access to key technologies like Google's Android and advanced semiconductors, now sells only a few million smartphones outside China annually, a stark contrast to its pre-sanction shipment numbers. Meanwhile, Huawei's EV ventures, which involve providing software and driver-assist systems to Chinese manufacturers, are seeing declining sales and deliveries, even as the broader Chinese auto market faces its worst year since 2021.

Huawei's strategic pivot back to smartphones signals a broader trend of tech companies seeking to solidify core businesses amidst diversification challenges. The company's ambition to push HarmonyOS globally suggests a desire to create an alternative ecosystem, potentially offering a new competitive front against dominant players like Google and Apple. This move could also indicate a growing confidence in Huawei's indigenous chip manufacturing capabilities, a key factor in overcoming past U.S. sanctions and asserting technological independence.

The slowdown in Huawei's EV partnerships highlights the intense competition and market saturation within the new energy vehicle sector, even for established tech giants. While Huawei is concentrating on its smartphone comeback, other players are likely to intensify their efforts to capture market share in the EV space. Companies relying on Huawei's automotive technology may need to explore alternative solutions or partnerships to mitigate risks associated with Huawei's shifting focus.