Huawei intensifies its high-end smartphone battle with Apple
Huawei released its new Pura 80 in Shanghai on Wednesday.
Huawei Technologies is rapidly fostering the China-developed HarmonyOS system, backed by high-density research investment and a surge in new device releases. These include its new photography flagship, the Pura 80 series costing from US$900, which was unveiled in Shanghai on Wednesday.
The push positions Huawei as a direct challenger to Apple in the high-end smartphone market, particularly as Apple faces criticism from consumers and Wall Street following its annual Worldwide Developers Conference (WWDC) this week, where AI function delays were disappointing.
Huawei invested over 20 percent revenue in research in 2024.
Research investment and Harmony
Richard Yu, head of Huawei's Terminal Business Unit, highlighted the company's substantial R&D commitment, stating that Huawei had invested 1.25 trillion yuan (US$173.6 billion) in research over the past decade, with 179.7 billion yuan allocated in 2024 alone, accounting for 20.8 percent of its revenue, compared to Apple's 8 percent and Google's 14 percent.
Yu emphasized that this "continuous pressurized R&D investment" is the inexhaustible power behind Huawei's breakthrough innovation and industry leadership, likening the tech race to a long-distance run.
As a result of these significant investments, the HarmonyOS ecosystem has expanded dramatically, now adopted across 1 billion devices. The latest iteration, HarmonyOS 5, is described as a "pure Harmony" system no longer reliant on Android, and is seeing over 400 application updates daily, signaling robust ecosystem development.
Huawei's new Pura 80 series, priced from 6,499 yuan (approximately US$900) to 10,999 yuan, features enhanced telescope photography capabilities, runs on HarmonyOS 5 and integrates AI models supported by both DeepSeek and Huawei's proprietary Pangu.
While the telescope function has been well-received in the market, it also contributes to higher production costs. Huawei's core strategy revolves around fostering the HarmonyOS ecosystem with increasingly advanced devices, said IDC China research manager Guo Tianxiang.
Huawei also launched its HarmonyOS AI Watch 5 in Shanghai, adding to its wearable device sales which have surpassed 200 million units globally.
The new Pura 80 is regarded as a "king of light and shadow" for enhanced photography features. Huawei is in direct competition with Apple in the high-end smartphone market in China.
Direct challenge with Apple
In the crucial Chinese high-end market segment, Huawei and Apple remain the two dominant players. In the first quarter of this year, Huawei commanded a 38-percent market share, trailing Apple's 43 percent. However, data from researcher Canalys reveals a sharp contrast in growth: Huawei's sales surged 69 percent year-on-year in the quarter, while Apple's sales dropped nine percent.
Apple's WWDC on Monday failed to meet expectations, particularly regarding promised improvements to its Siri voice assistant with generative AI capabilities. Gadjo Sevilla, senior analyst for Emarketer, commented: "The delays to Apple's in-house AI efforts will continue to draw scrutiny."
