Huawei on Tuesday, November 26, presented a series of Mate 70 smartphones that can run on the latest operating system developed by this company.
It is worth noting that the mentioned technology giant is currently striving for technological independence against the backdrop of sanctions from the United States. The corresponding goal is generally one of the dominant priorities for China at a time of increasing geopolitical tensions, which have negative consequences for the manufacturing sector. This situation also has an impact on the technological capabilities of the Asian country. In the relevant context, it is worth mentioning that the United States has limited the shipment of high-end chips and equipment for the production of microcircuits of the appropriate category to China. Moreover, Washington has repeatedly stated its intentions to scale up the mentioned restrictive policy towards Beijing.
The Mate 70 is the successor to the Mate 60, which debuted last year and became sensational news, both in a technological sense and in a political context. The Mate 60 was equipped with a Kirin 9000S chip that combines processor and components for what appears to be 5G connectivity. This microcircuit was manufactured using a 7-nanometer process technology by SMIC, a Chinese semiconductor foundry company. The nanometer figure refers to the size of each individual transistor on a chip. The smaller the transistor, the more of them can be packed on a single semiconductor. Typically, reducing the nanometer size allows manufacturers to produce more powerful and efficient chips.
In the political context, the Mate 60 became a sensation, since in this case a Chinese-made microcircuit was used, although it was expected that restrictive measures by the United States would deprive the Asian country of appropriate capabilities. Against this background, some policymakers in Washington have stated the need to tighten the export control regime.
It is worth noting that Huawei was separated from the Android operating system back in 2019. Besides, this company is what can be called one of the main points of application of Washington’s efforts in the framework of actions to limit Beijing’s technological potential. Huawei’s reaction to the inability to access Android was to develop its own software. In a certain sense, in this case, there is an example of how an external impact, which has a restrictive character and implies a decrease in the possibilities of moving forward, has become an incentive for internal technological evolution. It is possible that in the future, export control by the United States against China will significantly activate the independent technological development of the Asian country. It is also worth noting that Beijing has already made statements at the official level about the need for technological sovereignty.
Huawei did not say which chip runs Mate 70. Richard Yu, the head of the company’s consumer and auto businesses, said that the new series of smartphones can operate on HarmonyOS NEXT, the first independently developed mobile operating system of the firm.
Huawei is currently hoping that its operating system can become a viable alternative to Android and iOS in China. It is worth noting that on the domestic market, consumers demonstrate a high level of interest in the products of the technology giant. The corresponding interest has, among other things, a financial form of expression. For example, in the first quarter of 2024, Huawei smartphone sales in China increased by 70% year-on-year.
It is worth mentioning that early versions of HarmonyOS were developed using open-source Android code. HarmonyOS NEXT reportedly does not use the specified code. This fact means an important update in the development of the software of the company.
Will Wong, senior research manager at IDC, said during a conversation with media representatives that HarmonyOS Next has good potential as an alternative in China. According to the expert, the mentioned potential is related not only to the company’s reputation but also to the fact that Huawei is making efforts to gain developers into its ecosystem.
The firm’s consumer business has faced big problems after various restrictions from Washington left it without access to the most important technologies, including chips and software. After last year’s debut of the Mate 60, the company’s business in the domestic market was on a trajectory of active recovery, which became a sensitive factor of pressure on Apple’s position. According to IDC, Huawei’s share of the Chinese smartphone market in the third quarter of 2024 was fixed at 15.3%. For the same period last year, the corresponding figure was 11.1%. Apple’s share of the Chinese smartphone market in the third quarter of 2024 was fixed at 15.6%. A year earlier, the corresponding indicator was 16.1%. So far, the iPhone developer is ahead of Huawei in terms of the mentioned figure, but the potential continuation of the current dynamic will mean that shortly, the Chinese technology giant will be ahead of Apple.
The process of taking reservations on Mate 70 began in the current month. About 3 million relevant orders were booked on one of the Chinese e-commerce websites. It is worth noting that these indicators may not be fully transformed into real sales. At the same time, the corresponding scenario is still most likely not to affect most of the mentioned orders.
Huawei’s new device has artificial intelligence features. In this case, among other things, it means photo editing tools. It is worth noting that smartphone manufacturers have recently been actively involved in the development of artificial intelligence capabilities on their devices. Also, many relevant companies perceive AI as a kind of means of gaining customers. Smartphone manufacturers are seeking to take advantage of the technological advantages of the so-called artificial intelligence boom, which began after the debut of ChatGPT from OpenAI in November 2022, to increase their sales figures. Companies such as Qualcomm and MediaTek have launched chipsets for the mentioned devices that enable the processing power necessary for the functioning of AI apps. In January, Samsung presented the flagship line of Galaxy S24 smartphones with artificial intelligence capabilities.
In China, local cell phone manufacturers are currently seeking to impress consumers with their AI features before the launch of Apple Intelligence in the Asian country.
Honor, a spinoff from Huawei, announced last month that the newest version of its Android-based Magic operating system will focus on artificial intelligence as an assistant. It is worth noting that this brand cooperates with Baidu and other Chinese companies in the development of some AI functions. Some of the relevant functions are elaborated by Honor independently. The company also cooperates with Google in the development of devices that are sold overseas. Honor intends to roll out artificial intelligence capabilities to all its devices during the first few months of next year.
The Mate 70 series includes several modifications, among which the Mate 70, Mate 70 Pro, and Mate 70 Pro+. The price of the Mate 70 starts at 5,499 yuan ($759). The price of the Mate 70 Pro+ starts at 8,499 yuan.
Also, on Tuesday, Huawei announced its latest foldable smartphone called the Mate X6. The cost of this device starts from 12,999 yuan.
Over the past year, Huawei has managed to significantly strengthen its position. In this context, the most important result is the return of the company to the list of the five largest smartphone manufacturers in China, due to the growth in sales of the corresponding products of the firm in the Asian country. Huawei has sought to publicly showcase its technological capabilities. In an appropriate context, it is worth mentioning the trifold smartphone that launched in September and the HarmonyOS NEXT. In a certain sense, in this case, there is a kind of practical statement that restrictive measures on the part of Washington are not an obstacle to the development of the company.
The Mate 70 series and Mate X6 are foldable being capable of running the new operating system. Huawei also announced that some of its older devices will receive a software upgrade in the coming months.
Often, the efficiency of the operating system is a parameter that depends on the suite of available apps. Richard Yu demonstrated how, as part of HarmonyOS NEXT, artificial intelligence can interact with popular apps such as Alipay, one of the largest mobile payment services in China.
Currently, Huawei’s newest smartphones alongside HarmonyOS NEXT are largely focused on the Asian country’s market. To a large extent, the relevant priority is because the company is facing growing problems abroad.
Will Wong expects Huawei to pose a bigger challenge for Apple in China than the geopolitical factor, which has seen a deterioration in relations between Beijing and Washington. In the mentioned context, the expert noted that in the domestic market, the Chinese technology giant not only has the status of a premium brand but is also a national pride. In this case, it is worth paying special attention to the fact that China is characterized by such a partially social and, to a greater extent, trade, and economic phenomenon, which can be called consumer patriotism. Residents of an Asian country very often choose in favor of homegrown manufacturers, having the opportunity to buy goods from foreign companies. At the same time, this approach does not exist to the detriment of consumers. For example, sales of Huawei products were on a trajectory of rapid growth after the debut of the Mate 60 with an advanced chip. This means that Chinese consumers are still closely monitoring the characteristics of goods, not focusing solely on patriotic considerations. At the same time, until Huawei equipped its smartphones with the newest chip, its sales in the domestic market were not high.
It is worth noting that the specified company can strengthen its market position due to new form factors like foldable devices. Moreover, Huawei, acting in the paradigm of scaling its technological sovereignty, declines the level of vulnerability from external constraints. It is also worth noting that the activities of this company are what can be described as one of the most important fundamental components of China’s efforts to achieve technological independence.
Recently, technological sovereignty has become a more relevant strategy, which is not a metaphysical theoretical idea but belongs to the category of some kind of system consisting of specific practical circumstances. In this case, the relevance is largely related to the currently observed increase in tension in the space of geopolitical relations. Also, the experience of the coronavirus pandemic, when international supply chains were disrupted, testified to the importance of technological sovereignty against the background of unforeseen situations on an international scale that negatively affect processes in the business environment and the manufacturing sector.
As we have reported earlier, Huawei Makes Progress in Its Recovery.
Serhii Mikhailov
Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.