Market Overview

Huawei To Google: We Don't Need You Anymore

Huawei To Google: We Don't Need You Anymore

Chinese tech giant Huawei unveiled a solution Friday to being shunned by U.S. companies: its own operating system.

What Happened

Huawei was placed on a U.S. government blacklist in May and Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL) quickly suspended business activity with the Chinese company.

Huawei relies on Alphabet's operating system to power its devices; the longer-term relationship between the two companies is unclear.

Richard Yu, the CEO of Huawei's consumer division, spoke at the Huawei Developer Conference and acknowledged the relationship is "unclear" as Huawei is "waiting on an update," CNBC reported.

Huawei unveiled its own operating system, HongmengOS, which translates into English as "HarmonyOS."

"If we cannot use it [Android] in the future, we can immediately switch to HarmonyOS," CNBC quoted Yu as saying.

Why It's Important

HarmonyOS is meant to help power electronic devices from smartphones and laptops to sensors that require a lower-bandwidth solution, CNBC reported. The new operating system is meant to cater to the growing number of devices that connect to the Internet of Things.

HarmonyOS is open-source, which implies global tech companies can adopt it as an alternative to Google's system or Apple Inc. (NASDAQ: AAPL)'s iOS.

The attractiveness of Huawei's platform requires developer support to offer an attractive alternative.

"Huawei has the shop laid out nicely, but needs better goods and services inside the shop to attract users, sell and make them buy again and again," Neil Shah, analyst at Counterpoint Research, told CNBC.

HarmonyOS will be included in "smart screen products" later this year and will expand to other devices over the coming three years, according to CNBC. 

Related Links:

Secrets Behind Huawei's Hongmeng OS: Anchored In Nokia, Beating Android

Trump To China: Ink A Deal Now Or Wait Years For 'Much Tougher' Agreement

Public domain photo via Wikimedia


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