Huawei is stepping up its efforts in software areas such as cloud computing and smart cars, as US sanctions are hurting its hardware business.
And launched ArcFox, A brand of BAIC Automotive Group, a vehicle with Huawei Auto Technology.
The car included a cockpit equipped with HarmonyOS, the operating system launched by Huawei in 2019, as well as autonomous driving capabilities.
The Chinese company will not build the cars but focus instead on the technology that powers them.
Huawei recently launched some new cloud computing products as it looks to challenge Alibaba, the market leader in China, and“We hope the focus on cloud, software and services will be strengthened,” she said Total revenue.
The focus of the programs comes after the US sanctions on Huawei that caused a decrease in smartphone sales The Chinese giant was placed on a blacklist known as Entity List in 2019, which has restricted its access to some US technology.
And last year, Washington moved to block the Chinese giant’s access to major semiconductor supplies.
“Huawei is increasing its focus on software, cloud and services, as it becomes unable to purchase semiconductor components and related technology as a result of Washington’s sanctions,” Counterpoint’s Research Director said.
Through this effort, Huawei became like Google, which manufactures the Android operating system used by the majority of smartphones in the world.
The US tech giant is also working on in-car software and has a rapidly growing cloud computing business.
Huawei has described HarmonyOS as being able to work across various devices from smartphones to televisions and cars.
“The smartphone business faces challenges, but Huawei has another mobile platform which is the vehicle that can take advantage of HarmonyOS, and the vehicle could be a great mobile platform for the application and use of HarmonyOS,” said IDC Research Director.
In its pursuit of areas such as: vehicles and cloud, Huawei is looking to challenge some of the biggest tech companies in China, such as Alibaba, Baidu and Xiaomi.
With its dash in software, the Chinese company is trying to isolate itself from potential geopolitics and any other actions from the United States.
While Washington has successfully blocked its access to chips, it can be difficult to damage the software business, and the chips required for cars also require a less advanced manufacturing process than smartphones.