Huawei Founder Calls for Shift to Software

Ren Zhengfei, Huawei founder and CEO, called for a strategic shift towards software development. The announcement comes as the vendor revealed plans to launch a smartphone version of its HarmonyOS in early June.

He urged the company to become a leader in software, citing current efforts to develop systems around its HarmonyOS, Huawei Mobile Services (HMS) and Mindspore platforms in the IT domain. Ren noted Huawei must expand its efforts to make the platforms thrive, noting the US will have very little control over their future development. The move requires first building a diversified software team, he said.

Any shift away from hardware would likely take years to have a material impact on Huawei’s top-line. Its Consumer Group accounted for 54 percent of total revenue in 2020 compared with 34 percent from its carrier networks business. US sanctions have severely hindered Huawei’s smartphone business, and Ren previously stated he expected no change under President Joe Biden.