Huawei might step out of smartphone business, but they are expected to surprise with its entry into software industry.

By Sayyed Shehzer Abbas

Huawei founder and current CEO Ren Zhengfei in a recent interview expressed that the company might shift its business model from hardware to software. He asked the Chinese tech monster’s staff to transform the organization into a software power as an approach to mitigate the effects caused by US sanctions. Through Reuters, Ren said that Huawei should be more focused on its software developing skills as this business is “outside of US control and we will have more prominent freedom and self-rule.” 

Firstly, Huawei was severely hit because of the sanctions imposed by US government. Now the global chip shortage is also heavily damaging the company’s sales. It was reported that Huawei phones started to go missing from its store and it has put its mid-range phones production on hold. Huawei is currently in a state unfit to mass-produce a lot of its equipment items as a result of approvals restricting US firms from working with it. The organization stored chips and parts trying to moderate the assents, however the stores are restricted and at times will be quickly obsoleted. Huawei is additionally obstructed from utilizing Google applications and services on its cell phones. The Biden government yet do not seem to have any plans that it will turn around any of the Trump-period sanctions. But it was observed that it had eased its restrictions against other Chinese companies like TikTok and Xiaomi.


As a result of this environment, Ren purportedly advised workers that Huawei is to zero in on programming including MindSpore, its cloud AI platform, and its own operating system the HarmonyOS for different gadgets. The organization is supposed to plan to contend in significant business sectors other than the US. Reuters, in their report quoted Ren, “Once we dominate Europe, the Asia Pacific and Africa, if US standards don’t match ours, and we can’t enter the US, then the US can’t enter our territory,”.

With all these statements, it seems that Huawei might be out of its smartphone businesses. The recent selling off of its sub brand Honor also signals that the company might step out from producing phones and focus more on software industry where the US companies has less dominance. The HarmonyOS is announced to get a major update on June 2nd. The operating system is yet to launch on cell phones, with the underlying center being IoT gadgets and TVs upon its initial delivery. 

Huawei has never failed in surprising its fans and this update might be the turning point for the company to make profits again.