Huawei Has Established Differentiation Barriers Within Its Ecosystem

To realize its strategic vision of "Building a fully connected, intelligent world," Huawei has established differentiation barriers within its ecosystem, laying a solid foundation for the sustainable development of its products.

Huawei's robust in-house, full-stack R&D capabilities for operating systems and communication technologies can add value to scenarios using a complete set of Huawei mobile devices, establishing formidable barriers to compete with. Huawei's in-house operating system, HarmonyOS, features distributed algorithms that enable users to seamlessly switch tasks between smartphones, tablets, and notebooks; Huawei's wireless connection technology, NearLink, offers a low-power, low-latency, high-speed, and seamless experience for devices that support this technology.

Huawei boasts a broad range of personal and business hardware products, offering users seeking a complete ecosystem experience a wide selection. In the consumer product category, Huawei competes with products in various segments, including notebooks, desktops, wearable and hearable devices, smart speakers, smart TVs, and smart home solutions. In the business product category, Huawei also offers a comprehensive portfolio, such as the Huawei “Qingyun” series, which covers commercial smart screens, tablets, desktops, printers and more. Users can easily enter Huawei's ecosystem through a single product or scenario.

The differentiating strengths result in high user retention and conversion rates once users enter the Huawei ecosystem. 

In the past three years, Huawei has invested in, and upgraded HarmonyOS, and other consumer products, which has meant in mainland China, Huawei’s wearable, desktop, TWS and notebook market share achieved resilient growth from H1 2019 to H1 2023.

Huawei's exploration of "connecting everything" offers valuable insights for building a comprehensive ecosystem and establishing ecosystem competitiveness.

• Ecosystem competitiveness necessitates the establishment of technological barriers. It represents firm, long-term, and substantial investments. The strategic determination of vendors is one of the crucial foundations.

• Smartphones, as the core business of vendors, serve not only as a source of revenue but also as an entry point into the ecosystem and a gateway to channel clients. While vendors traverse exploratory businesses, they must ensure the market share and profitability of the smartphone business is robust.

• Collaboration with industry partners, beyond functional compatibility and software integration, should aim for deep integration and empowerment. For example, Huawei can provide digital cockpits and smart, self-driving support to automotive partners. Deep cooperation maximizes value and product competitiveness for both parties and users.

Huawei's "Internet of Everything" empire is smoothly entering a high-growth phase despite facing challenges related to operating system expansion and smartphone business. It is destined to set a new benchmark and bring fresh examples and competitiveness to the industry of building an ecosystem and leading to a breakthrough.