Huawei Launches Harmony OS to Take On Google's Android: WSJ

Huawei Technologies Co rolled out its self-developed smartphone operating system, Harmony OS, to reduce dependence on U.S. suppliers and contest Alphabet Inc’s GOOG GOOGL Google’s dominance., the Wall Street Journal reports.

What Happened: Harmony OS will be an open-source operating system like Google Android.

Huawei gadgets were barred from updating Google’s Android operating system since August, under a U.S. embargo. The ban also blocked Huawei’s access to Google Mobile Services software package.

Samsung Electronics Co Ltd SSNLF, Xiaomi Corp XIACF, and other leading phone makers besides Apple Inc AAPL depend on Google’s Android. Huawei’s potential customers could be the Chinese sellers, who account for 57% of the global handset market.

Samsung and Microsoft Corp’s MSFT operating system launch met with minimal success due to Google’s dominant market share.

Earlier this year, Huawei disclosed plans to install Harmony OS on over 200 million Huawei devices, including smartphones, and over 100 million third-party devices.

Why It Matters: Analysts estimate headwinds in the form of a large ecosystem of software developers, large user base to attract developers and convince outside vendors to abandon a successful product.

International Business Strategies Inc CEO estimates greater odds against the mass adoption of the Harmony OS.

Huawei showcased its Harmony OS at a Dongguan developers conference in 2019.

Huawei’s app store AppGallery has 540 million monthly users and 2.7 million developers. Huawei’s Petal Maps replaces Google Maps, while Petal Search replaces the phone’s Google search bar.

The new operating system will not restore user access to Facebook Inc FB, YouTube, and Instagram.

Some Chinese manufacturers are already running Harmony OS on their smart appliances, including home-appliance giant Midea which is restricted to China.

A Canalys analyst expects Huawei to enjoy greater success in Google’s least penetrated markets like Africa.

Price action: GOOG shares closed higher by 0.76% at 2,429.81 on Tuesday.