Experts Skeptical of Huawei Silicon May Be Missing the Forest for the Trees

1. Forget about hardware; the real money is in software

For months, headlines have fixated on Huawei's limitations in producing advanced 7nm chips, while Apple excels with its cutting-edge 3nm technology. However, this focus on hardware overlooks a critical lesson from history: software, not hardware, drives profits.

Bill Gates built the Microsoft empire not by building hardware—outsourced to IBM—but by dominating the software business. Today, Microsoft’s software business dwarfs IBM's historical combined hardware and software projects.

Huawei’s HarmonyOS NEXT, already claimed to be the world’s third-largest mobile OS with over a billion installations, represents a significant milestone. While currently present mostly in China, the system has the potential to expand to other markets, particularly in the Global South. HarmonyOS could appeal to nations seeking to reduce reliance on U.S.-based technology. A large user base often translates into substantial revenue streams over time.

Moreover, Huawei is working on extending its OS to personal computers under the name HarmonyOS PC, with a target release in Q3 2025. Even if this initiative gains traction solely within China, particularly in government systems, it could reduce the dominance of Microsoft Windows and Apple macOS, cutting into their lucrative revenue streams.

2. Know-How and Engineering Workforce

Unlike hardware chip technology, software OS tools and expertise are widely accessible, starting with the open-source availability of Android OS. This means the necessary know-how is either readily available or easy to acquire.

China also boasts a large skilled engineering workforce—reportedly four times larger than that of the U.S.—providing Huawei with ample talent at a competitive cost to develop its new OS. With sufficient time and resources, Huawei is likely to succeed in its HarmonyOS project.

3. Marketing or Reality?

Reports suggest that HarmonyOS is facing some challenges. According to a media report, even the migration of China’s own WeChat app to the platform has encountered difficulties. This is not entirely surprising, as building a stable operating system is a highly complex and demanding task.

Even Steve Jobs famously staged parts of his iPhone presentation during its early development stages. It required time and engineering effort for Apple to refine and perfect the product.

Huawei faces a similar trajectory. If it commits to the project with enough talent, funding, and patience, HarmonyOS could mature into a serious alternative to Microsoft and Apple’s software dominance.

4 References

[1] HarmonyOS

[2] HarmonyOS NEXT

[3] China's first fully home-grown mobile operating system HarmonyOS NEXT launched

[4] https://www.huaweicentral.com/category/harmonyos/harmonyos-next/

[5] HarmonyOS NEXT becomes the world’s third major mobile OS, joining Android and iOS

[6] Huawei’s HarmonyOS NEXT faces major test with WeChat: Will it pass?

[7] Huawei’s China-Made 7nm Chip ‘Years Behind US’, Raimondo Says

[8] In Huawei’s battle against Apple, chips are still a weakness, says analyst

[9] HuaweiNext-gen Huawei PCs will ditch Windows for HarmonyOS: Chairman

[10] Huawei HarmonyOS PC rumored to delay till Q3 2025

[11] HarmonyOS PC UI design allegedly surfaced on Huawei Developer website

[12] The Global Distribution of STEM Graduates: Which Countries Lead the Way?

[13] How Steve Jobs Faked His Way Through Unveiling the iPhone