Huawei’s fall from the world’s top 5 smartphone vendors naturally didn’t go unnoticed. Shoved out of networking infrastructure, especially 5G, in many countries, the company also found itself struggling in the smartphone market because of its inability to buy parts and components necessary to make those devices. Huawei isn’t giving up, though, but does have another Plan B in place and, quite amusingly, it will reportedly be following Google’s model in expanding its business to software, the cloud, and cars.
Although it has some software expertise, Huawei has always been traditionally seen as a hardware company. It makes networking equipment, both for operators as well as consumers, as well as mobile devices. Those hardware-based businesses, however, are starting to fall apart under the weight of the US sanctions against the company and CNBC says Huawei is looking to boost its software efforts in response.
Huawei already started developing its own Harmony OS that first appeared in smart TVs and IoT devices. The first iteration for smartphones was revealed to be more like a reskinned Android but the ultimate goal, at least according to the company, is a completely new mobile platform. Now it is planning on entering the cloud computing market and as well as smart cars, two areas where Google, which is primarily a software and Internet services company, already plays in.
Not only would this new venture provide Huawei with new business opportunities, it could also help it avoid some of the effects of the US ban. The hardware for these markets tells a different story that may not be covered by those sanctions. At the very least, Huawei and its partners could make their own while staying away from US-made products.
It won’t be an easy journey for Huawei, however, as it will have to face more established players in those fields, especially in China. Even with Google out of the picture, Huawei will have to compete with Alibaba, China’s king of cloud computing, and Baidu, which leads the automative tech market in the country.