Huawei - "Anything Tesla Can Do, We Can Do"

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In depth: Will Huawei become China's Tesla challenger?

Experts see more concern about the telecom giant's ambitions than its abilities


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A Porsche Panamera car driven by the Huawei Mate 10 Pro smartphone outside the Camp Nou stadium in Barcelona during the 2018 Mobile World Congress.


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A driverless car controlled by a Huawei Mate 10 Pro smartphone is pictured during the Mobile World Congress in Barcelona in 2018.

AN LIMIN, ZHENG LICHUN, ZHANG ERCHI, and HAN WEI, Caixin

From Alibaba-backed Xpeng to Nvidia partner Li Auto, there are plenty of Tesla wannabes in China that aim to copy the American electric-car maker's success and catch the tide of an industry in revolution.

But the real Tesla challenger may be Huawei Technologies Co., the telecom giant at the center of China-U.S. tech frictions, some experts say.

"If you look at the stock price of Tesla, you will know where the future of automobiles lies," Xu Zhijun, a rotating chairman of Huawei, said in a public lecture in 2019. On Sept. 1, Tesla's market cap surpassed $500 billion, an amount greater than Ford, General Motors, Daimler, Volkswagen, and Toyota put together.


Xu is among many industry experts who think Tesla Inc. is pioneering the next automobile-industry revolution, powered by electricity and artificial intelligence (AI), which will lead to a fundamental change in the design of cars and the structure of the industry. But Xu's comment also shed light on the next business focus of Huawei as it struggles with U.S.-led sanctions choking its core businesses.

Huawei's move into auto-related technology research goes back to 2013 when the company quietly started a unit to develop internet-based auto applications. In April 2019, the company made its first appearance at the Shanghai international auto show, declaring a plan to become an auto parts supplier. One month later, Huawei officially set up an auto business unit focusing on smart car solutions.

Huawei's auto business includes five segments -- smart driving, smart cockpit platform, intelligent network, smart electric and cloud services. The operations are jointly overseen by Huawei's smart car unit and the consumer business group, which works to connect the auto applications with Huawei's other mobile-based services.

Although founder and Chairman Ren Zhengfei has repeated Huawei had no plan to manufacture cars, the company has built up capacity to produce almost everything needed for smart cars.

"Anything that Tesla can do, we can do," Xu said in an October interview.

A person close to the company said Huawei aims to become a one-stop supplier of all software and hardware for smart cars and seeks a dominant say in the industry. There will only be two or three such players globally, the person said.

Huawei has been aggressively recruiting talent from major auto suppliers such as Germany's Robert Bosch GmbH (Bosch), sources said. If needed, Huawei can quickly set up a team with thousands of professionals, a person said.

In mid-August, Huawei quietly modified its business registration by adding research, production and sales of auto parts and smart driving systems to its business scope, public records showed.

In early September, Huawei unveiled the 2.0 version of its homegrown Harmony operating system (OS), which will power Huawei's new smartphones starting next year. As an alternative to Google's Android OS under the U.S. business ban, the Harmony OS was installed in Huawei's smart cockpit platform HiCar, allowing people to control most autonomous functions in their vehicles via Huawei cellphone.

Huawei needs the new auto business as its main telecom equipment and cellphone businesses face strengthening headwinds globally. A Trump administration ban that took effect last week cut off foreign supplies of semiconductors, software and other materials that are key to powering Huawei's mobile phones and 5G base stations.

Huawei wants to do everything related to silicon in cars, a person close to the company said. Ren is pushing forward the auto business regardless of cost, this person said.

Auto industry players are closely monitoring Huawei's expansion.

"Huawei is likely to become a Chinese version of Bosch" and pose threats to other major auto suppliers, an executive at a leading automaker said.

Chen Yudong, China president of Bosch, said Huawei is a new entrant that could be a partner of Bosch as well as a potential competitor.

Automakers are concerned that Huawei will eventually build its own cars and revamp the entire industry.

"It previously said it wouldn't manufacture cellphones," said one auto executive. In the second quarter, Huawei became the world's biggest smartphone maker, overtaking Samsung and Apple, 17 years after it launched its cellphone business.

The auto industry faces unprecedented changes in the next two to three years as AI and autonomous driving technologies are deployed, a senior industry expert said.

The transformation requires a new digital architecture to manage the complex system and ensure safety and compatibility, said Cai Jianyong, chief technology officer of Huawei's auto unit. Huawei is well prepared at that crossroads, Cai said.

The long preparation

Huawei set its sights on internet-based auto technologies in 2013 when electric vehicles became an investment hot spot in China. Supportive government policies encouraged investment to flood into the sector, including some attempts that later failed such as LeEco founder Jia Yueting's auto business.

Rumors that Huawei would launch a car-building business have been around for years, although Ren repeatedly denied them.

Xu told media in 2019 that there wasn't a consensus inside Huawei as of late 2018 about whether the company should push further into the auto market. Richard Yu, CEO of Huawei's consumer business group, is one of the supporters of the auto business as he wants to follow Apple Inc. in electric car development.

But Ren was lukewarm, sources said. In a 2019 interview with several media outlets, Ren said "Huawei will never build cars." Huawei will focus on its core business and not enter areas where it can't effectively compete, Ren said.

At that time, Huawei thought the time for smart cars was not ready and the company should continue focusing on electronics and communication businesses where its strengths lie and avoid direct competition with auto parts suppliers, sources said.

Despite the insistence on staying away from car building, Huawei has quickly stepped up development of auto software and electronic modules that could equip vehicles with Huawei's 5G wireless communication technologies.

In May, Huawei partnered with 18 Chinese automakers on 5G applications for cars, including FAW Group, Chang'an Automobile Co. Ltd., SAIC Motor Co. Ltd., BAIC Group and BYD Auto Co. Ltd.

As of September, more than 150 models produced by 20 automakers adopted Huawei's HiCar smart cockpit platform, which is similar to Apple's CarPlay and Google's Android Auto, the company said. The number of models will exceed 500 by 2021, Huawei said.

Project N61

Huawei is moving toward car building in a partnership with BAIC BluePark New Energy Technology Co. Ltd, the electric-car unit of BAIC Group. The first model co-developed by the two companies is called the N61. A prototype of the car is set to start road tests in late 2020 and hit the market in the last quarter of 2021.

Liu Yu, general manager of BAIC BluePark, said the N61 fully adopted Huawei's software and hardware solutions for smart cars and can operate in Level 4 autonomy, meaning conditionally full self-driving.

Huawei's partnership with BAIC BluePark started in late 2018 and was expanded to full-range business cooperation in January 2019. Under the partnership, the two companies jointly set up a lab, bearing their own part of research costs. They would share revenue based on their inputs when products go to market, according to Liu.

A BAIC source said Huawei is counting on the N61 project to create a standard system that can be applied to other automakers.

According to documents provided by BAIC, Huawei's autonomous driving system includes three lidars, or laser-based light-detecting and ranging systems; six millimeter-wave radars; 12 ultrasonic radars; and 13 cameras. The system is powered by two high-end Ascend AI chips. The hardware configuration is more advanced than that of Tesla's Model 3.

A person close to Huawei said the company has enough chip inventories to support auto research and small-scale production despite the U.S. trade ban.

The game changer

Most industry insiders interviewed by Caixin said they think Huawei is capable of becoming a major player in the auto industry. It may become the provider of a commonly used technology platform for the industry, like the Android OS for smartphones, they said.

An auto company executive familiar with Huawei said the company is doing everything related to smart cars but will figure out the most valuable part to focus on, which may be the operating system and computer chips.

Compared with conventional automakers seeking transformation in the smart car era, Huawei is more likely to think outside the box and create innovative products like Tesla, an auto industry source said.

The key is how Huawei will push forward its strategy and balance its partnership with auto companies, as people are more concerned about its ambitions than its abilities, experts said.

A person close to Huawei said most automakers have mixed feelings when working with Huawei. On one hand, they want to embrace Huawei's technology. But on the other, they are hesitant to deepen partnerships because of worries that Huawei will grow into a potential threat.

Industry analysts said they expect the next car building boom to come in two to three years as the industry transforms to adopt higher levels of intelligence, an opportunity that Huawei may tap.


Source: NIKKEI ASIAN REVIEW
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How Huawei grew to dominate the world

While Chinese government support was essential the telecom giant has also benefited from deft management and global talent


Tesla Cybertruck Huawei - "Anything Tesla Can Do, We Can Do" Handout
There were many factors behind Huawei's rise, including government support but also shrewd management and a wide-ranging talent pool. Photo: Handout

From its earliest years, the telecommunications equipment industry has been considered strategic by the governments of highly industrialized countries. As such, national champions have emerged including Alcatel in France, NEC in Japan, Siemens in Germany and Ericsson in Sweden.

In the US, the AT&T monopoly had its Western Electric unit that supplied equipment exclusively to its operating units and became the largest telecom equipment company in the world.

In recent years a new Chinese national champion, Huawei, has emerged. Since it started in the late 1980s, Huawei has grown to dominate the industry, while Lucent, the equipment company that originated from Western Electric after the breakup of AT&T, no longer exists.

Huawei, with current revenues in excess of US$100 billion annually, dwarfs its remaining competitors Ericsson, Nokia and ZTE. Huawei combines an aggressive product investment strategy with global sales at prices lower than its competitors.

But underpricing competitors would have been futile if its products and the associated implementation services had not been excellent. How did such an industrial upheaval happen?

Economist Robert Atkinson, author of “Who lost Lucent?” in the American Affairs journal’s Fall 2020 edition, attributes a great part of this success to the financial support of the Chinese government and preferential access to the local market.


Tesla Cybertruck Huawei - "Anything Tesla Can Do, We Can Do" Huawei
People visit the Huawei Connect Conference in Shanghai on September 23, 2020. Photo: AFP/STR

The company started with a strategy of emulating products of competitors and serving the local market, but technology leadership was the long-term objective as resources were added.

Recognizing that research resources were limited in China, the company recruited talented engineers globally, left them in place and integrated them in its product development programs. Huawei now has more than 100,000 engineers globally.

The company also demonstrated the ability to use advanced technology from all sources. In fact, it was the first to use in volume a very sophisticated network-management chip developed by one of the chip companies in my portfolio that was deemed too revolutionary by others in the industry.

That is true, but while government support was essential, the company also benefited from outstanding management. Assembling excellent talent, the company channeled investment in a timely manner to deliver the products needed by the global carrier industry.

Huawei has vastly more resources than its competitors for costly new product development. In fact, in new fifth-generation (5G) wireless technology, Huawei is setting the standard for product leadership because it made massive investments in the technology very early.

The company has also expanded into the consumer market. It is now the second-largest vendor of smartphones and is developing its own chips to offer proprietary products.

It is interesting to note that Huawei is not a monopoly supplier in China. The government-owned carriers in China maintain a competitive market, with both Ericsson and ZTE as suppliers in addition to Huawei.

The history of the industry might have been different with serious competition – if Lucent had been better prepared to meet the industry needs and had serious government support. In 1999, Lucent was the largest telecommunications equipment company in the world, with profitable revenues of $38.3 billion.

Tesla Cybertruck Huawei - "Anything Tesla Can Do, We Can Do" ATT-
An AT&T telecommunication logo at the entrance of a building in Washington on June 11, 2019. Photo: AFP/Eva Hambach

It incorporated Bell Labs as a great research resource, but it was ill-prepared to meet new global carrier needs driven by the internet and wireless communications. The reason was its pedigree.

As the monopoly supplier to the AT&T carriers, the product strategy was driven by their requirements. Focused on financial performance as a public company, product development costs were constrained.

The company made many acquisitions to fill the pipeline, but these proved disappointing. As a result, revenues fell to $12 billion in 2000. The company lost $16 billion in 2001 as revenues continued to drop.

Lucent eventually merged with Alcatel, and then was acquired by Nokia. No telecom equipment supplier exists in the US currently.

What of the future? Huawei’s success invites competition but telecommunications products are becoming more complex and ever more costly to develop. The capital needs are enormous.

As I noted in Asia Times in June, competitors hoping to gain market share will have to be nimble and have access to large resources to allow comprehensive product suites to be developed that are certain to be ever more complex.

Inevitably, government financial support will be essential on a large scale with multidisciplinary talents globally organized.

Source: Asia Times
 
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Lets be real... They steal all their tech from American companies.
Beat me to it.

"Anything you can do we can sign a contract deal with you to do for cheaper and then ignore copyright laws with the backing of our government."
 
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man.. i just rolled my eyes so hard
 


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"Anything Tesla Can Do, We Can Do"
? What if Tesla wanted to sell networking equipment in the US? ?
 

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man.. i just rolled my eyes so hard
Prepare to turn 360 degrees and walk away.

Chinese made "radiance EV". Original design, do not steal!

Tesla Cybertruck Huawei - "Anything Tesla Can Do, We Can Do" 120324058_3660529983979670_2756280271687635630_
 

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Prepare to turn 360 degrees and walk away.

Chinese made "radiance EV". Original design, do not steal!

120324058_3660529983979670_2756280271687635630_n.png
Original? Look at that center screen in the background of the steering wheel - a copied implementation never seen before until Tesla had already done it first. Copying major design elements and then adding subtle alterations afterwards in a steering wheel, one could say, is still copying and that behavior has been seen a lot from Chinese companies.

But in defense of the previous post and the Chinese, some things are also hard 'not to copy', at times. If it's good and it's not 'broke', don't 'fix' it - use it instead. A plane must have wings in a certain aerodynamic profile to fly, so most airplanes have a similar appearance.

Yet trying to declare that one can " ... do anything that Tesla can do" is obviously a marketing focus 'slight' to Tesla and does not offer any mutual respect. What's wrong with acknowledging when someone has 'paved the way' for new directions and implementations, and instead of acting out competitive or jealous pride, why not give Tesla a 'shout out' and some Credit? Why not say something like "We have been so impressed with these aspects of Tesla's technology and implementations, that we've adopted them in this car together with some of our own ideas - we hope you like it...". Why not express something like that and give Tesla some props? Instead of that what we see often, are Chinese companies quietly and quickly copying something in an effort to rush or surpass at the manufacturing stages - a devious and selfish approach.

But you don't hear Elon whining at the Chinese - in the manner Nikola was trying to sue Tesla for a vaguely similar entry door and windshield shape on their Semi just so they could get a desperate infusion of money. It's turning out Nikola was even a lot more desperate than many people realized. This is what one could call 'Emotional Management' instead of professionalism.

But trying to shoot prideful 'slights' across the bow of Tesla when they should actually be crediting Tesla's implementations and tech ideas for their products instead - well, that is 'Emotional Management' too. Again, some things are naturally going to be similar. But again, to Huawei I would say, if you can "...do anything that Tesla can do." - "OK, but what can you do as a 'First' in the industry?" It's easy to to follow in a trail that someone else has already blazed and then brag about your step, but again, that's low hanging spoiling fruit and also quite pointless.

One more note to the previous post, if you 'turn 360 degrees' you're not 'walking away', you're just walking the same direction after having spun around pointlessly. Not unlike and just as pointless as Huawei's marketing comments.
 
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EXCLUSIVE Huawei deepens dive into EVs, seeks control of small automaker- sources

China's Huawei Technologies is in talks to take control of a small domestic automaker's electric vehicle unit, two people with direct knowledge of the matter said, in what is seen as a strategic shift for the world's largest telecom equipment maker.

Huawei, which has been battered by U.S. sanctions, is in talks with Chongqing Sokon (601127.SS) to acquire a controlling stake in the latter's Chongqing Jinkang New Energy Automobile, said the sources.

The move will allow Huawei (HWT.UL) to make intelligent cars bearing its own nameplate, they added. Jinkang counts U.S. EV brand Seres, formerly known as SF Motors, as its main asset.

It would also provide the first evidence that Huawei is looking to go beyond just offering auto operating systems and have an end-to-end presence in the EV business.

Huawei and Sokon did not immediately respond to requests for comment.

The push into smart cars, if finalised, would signal a major shift in business focus for Huawei after two years of U.S. sanctions that have cut its access to key supply chains, forcing it to sell a part of its smartphone business.

Underscoring the shift, the company's rotating chairman Eric Xu announced pacts with three state-owned Chinese carmakers, including BAIC Group, to supply "Huawei Inside", a smart vehicle operating system, at the Shanghai Auto Show earlier this month.

Huawei's foray into EVs comes as technology firms such as Xiaomi Corp (1810.HK) have been stepping up efforts in the world's biggest market for such vehicles, as Beijing heavily promotes greener vehicles to reduce carbon emissions.

As part of the deal, Huawei also plans to buy an undetermined stake in privately-owed Chongqing Sokon Holdings, the biggest shareholder of Shanghai-listed Sokon, said one of the sources.

Richard Yu, head of Huawei's consumer business group who led the company to become one of the world's largest smartphone makers and has recently shifted his focus to EVs, is leading the talks with Sokon, said the two people.

The telecom giant looks to finalise the deal as soon as July, said the other source.

MASS PRODUCTION
Huawei is also seeking to control the EV brand ArcFox of BAIC's BluePark New Energy Technology (600733.SS), which recently launched its Alpha S model equipped with the "Huawei Inside" system, said the two people and another person with direct knowledge.

But BAIC is more keen to have Huawei just as a minority shareholder in ArcFox, they added.

A BAIC representative referred the query to BluePark which did not immediately respond to a request for comment.

All the sources declined to be named.

In February, Reuters reported that Huawei plans to make EVs under its own brand and could launch some models this year. read more

Sales of new energy vehicles, including pure battery electric vehicles as well as plug-in hybrid and hydrogen fuel cell vehicles, are expected to make up 20% of China's overall annual auto sales by 2025.

For months, Huawei has been deeply involved in the operation and manufacturing of the little-known Sokon and its loss-making Seres unit.

Under the tie-up, Seres's first model, "Huawei Smart Selection" SF5, debuted at the Shanghai Auto Show and received over 3,000 orders within two days after the pre-sale started last week, according to Seres.

Huawei is selling SF5 vehicles in its stores across China including its online store VMall.com.

The company aims to launch the first intelligent car under its own brand for mass production at the earliest by the end of this year, said one of them.

Huawei has high expectations for the model, which is under development based on the Seres SF5, but the existing supply chain of Sokon is struggling to meet such expectations, said the same person.

"The supply chain for the auto industry is very long and complicated," said the person. "Huawei does have its strength in software and platform but its ideas can't be realized without solid technology improvements in the supply chain."



SOURCE: REUTERS
 
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Having a sheer industrial base at the ready to copy and scale someone else's innovation, is not a real accomplishment. Tesla is willing to take risks of innovation, build new manufacturing systems, and do all the hard work to open markets for their original product. Copying others' ideas to scale and steal sales markets, is manipulative industrial theft and is most dishonorable.
 

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Copying other's success is just following the blazed trail. It's doubling the resources possible to be applied to the market.

Tesla literally can't make more cars than they can sell right now. So they want more factories to be built to meet that demand that they cannot.

-Crissa
 

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Copying other's success is just following the blazed trail. It's doubling the resources possible to be applied to the market.

Tesla literally can't make more cars than they can sell right now. So they want more factories to be built to meet that demand that they cannot.

-Crissa
I would agree with giving chinese industry the benefit of the doubt and looking forward to a greener future, but Tesla has tried to go after people literally copying them and nothing has come of it in china: https://www.google.com/amp/s/electrek.co/2020/05/28/tesla-clone-xpeng-copying-tesla-website/amp/

The pics of the UIs from the beijing auto show told the whole story, nearly every single car was just a copy paste of the Tesla UI. It even happened to a laser company I used to work for, they sold to a chinese solar plant and then a year later there were two chinese companies making their machine that looked nearly identical and we're using the same code.

Hopefully Huawei is actually doing development and not just waiting for Tesla to do it right.
 
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Huawei pivots to software with Google-like ambitions as U.S. sanctions hit hardware business
PUBLISHED SUN, APR 25 202111:02 PM EDTUPDATED MON, APR 26 202112:10 AM EDT

Arjun Kharpal@ARJUNKHARPAL


KEY POINTS
  • Huawei is boosting its efforts in areas such as cloud computing and smart cars hoping software becomes a larger part of its revenue mix in the future.
  • The pivot to software comes after U.S. sanctions on Huawei have caused smartphone sales to plunge.
  • Behind Huawei’s push into software is also an attempt to insulate itself from potential geopolitics and any further actions from the U.S.


GUANGZHOU, China — Huawei is boosting its efforts in software areas like cloud computing and smart cars as U.S. sanctions hurt its hardware business.

Last week, Arcfox, a brand under automaker BAIC Group, launched a car with Huawei’s vehicle technology. It included a cockpit kitted out with HarmonyOS, the operating system Huawei launched in 2019, as well as autonomous driving capabilities. Huawei will not be making cars and will instead focus on the technology that powers them.

And on Sunday, Huawei launched some new cloud computing products as it looks to challenge China’s market leader, Alibaba.

Huawei said in a press release on Sunday that it hopes the focus on cloud will “eventually increase the proportion our software and service business has in our total revenue mix.”

The pivot to software comes after U.S. sanctions on Huawei have caused smartphone sales to plunge. The Chinese giant was put on a blacklist known as the Entity List in 2019 which restricted its access to some American technology. And last year, Washington moved to cut Huawei off form key semiconductor supplies.

“Huawei is doubling down on pivoting to a software/cloud and services company,” Neil Shah, research director at Counterpoint Research, said.

As a result of Washington’s sanctions, Shah said the Chinese company is “unable to procure critical semiconductor components and related tech” from the U.S.

“Huawei with this effort is becoming like Google,” he said.
Google makes the Android mobile operating system used by the majority of the world’s smartphones. The tech giant is also working on in-car software and has a fast-growing cloud computing business.

Huawei has also touted its HarmonyOS as being able to work across different devices from smartphones to TVs and cars.
Tesla Cybertruck Huawei - "Anything Tesla Can Do, We Can Do" 46200_rc2ycl9gktky_rtrmadp_0_china-huawei-tech-usa

The Huawei logo is seen at the IFA consumer technology fair, amid the coronavirus disease (COVID-19) outbreak, in Berlin, Germany September 3, 2020.
Michele Tantussi | Reuters

“The smartphone business is facing challenges, they have another mobile platform which is the car for them to utilize HarmonyOS. The car could be a big mobile platform to apply and use HarmonyOS,” Will Wong, research manager at IDC said.

In its pursuit of areas such as vehicles and cloud, Huawei will look to challenge some of China’s biggest technology companies. Alibaba is the market leader in China for cloud computing. And in the vehicle space, a slew of companies are vying for a slice of the pie from established players like Baidu to new entrants such as Xiaomi.

Insulation from geopolitics

Behind Huawei’s push into software is also an attempt to insulate itself from potential geopolitics and any further actions from the U.S. While Washington successfully hindered Huawei’s access to chips, it could be a bigger challenge to hurt the software business.

“It will be more protected when talking about geopolitics from the U.S.,” IDC’s Wong said.
He noted that the chipsets required for vehicles require a less advanced manufacturing process too than smartphones.


SOURCE: CNBC
 
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The push into smart cars....
So now it's "smart cars" much like the transition from simple cell phones to smart phones years ago.

I thinks this is first time I have seen the term "smart cars". But it really does make sense because the newer cars, especially EV's, are becoming mini-computers much like the cell phone has evolved into.

Well ok then, smarts cars, smart tucks, smart vans etc., it is then. Of course this will most likely refer exclusively to EV's in the very near future.
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