According to Tianfeng Securities, Huawei's "Project 1" with pure-blood HarmonyOS will be launched in 2024, and HarmonyOS Pangu will debut for the first time, promoting the integration of AI+OS. As China's second largest operating system, HarmonyOS's ecosystem partners will face multiple growth opportunities.
As learned from the Wise Investment Finance APP, Tianfeng Securities has released a research report stating that Huawei's "Project 1" with pure-blood HarmonyOS will be launched in 2024, and HarmonyOS Pangu will debut for the first time, promoting the integration of AI+OS. As China's second-largest operating system, HarmonyOS's ecosystem partners will face multiple growth opportunities.Recommendations: 1) software development/services: Pactera EDGE(301236.SZ), 9F Inc.(688609.SH), ChinaSoft International Limited(00354), Thunder Software Technology Co., Ltd.(300496.SZ), Hoperun Software Co., Ltd.(300339.SZ); 2) hardware: Digital China Group Co., Ltd.(000034.SZ), Fiberhome Telecommunication Technologies Co., Ltd.(600498.SH), ChipSea Technologies(Shenzhen)Corp.,Ltd(688595.SH), Talkweb Information System Co., Ltd.(002261.SZ).
Huawei's "Project 1" with pure-blood HarmonyOS will be launched in 2024.
According to Data Smart Frontier, Huawei is expected to release the HarmonyOS NEXT Beta version system at the Developer Conference (HDC2024, June 21-23), and the official version will be launched together with the Mate70 series in 2024Q4, no longer compatible with Android. In this context, building a native application ecosystem for HarmonyOS has become Huawei's "Project 1" for 2024. Huawei has invested a lot of resources to accelerate the development of native apps through on-site incubation by big factories, resource exchange, and training (source: Data Smart Frontier). As of May 2024, more than 4,000 native HarmonyOS apps have been launched, and it is expected to have 5000+ by the end of the year, and eventually achieve 500,000+ native HarmonyOS apps.
HarmonyOS Pangu will debut for the first time, promoting the integration of AI+OS.
Since 2024Q2, Microsoft has accelerated the integration of Copilot into Win11 and Apple has released the personal intelligent system Apple Intelligence. Mainstream operating system manufacturers are accelerating the layout of AI and launching the implementation mode of AI+OS integration.
At this HDC conference, ModelArts 5.0 and HarmonyOS NEXT Pangu Edition will debut together for the first time, building a native intelligent foundation by sinking Huawei's AI capabilities to the operating system layer. Tianfeng Securities believes that AI+OS integration can promote the construction of HarmonyOS ecosystems in two ways: (1) AI can improve app retention and activity, and is expected to form a closed loop of "AI empowerment - native app development - HarmonyOS ecosystem prosperity." Such as cross-application execution of operations, user customization, etc .; (2) Achieving interaction between large models, mobile phones, PCs, and terminal devices, is expected to drive consumer demand for replacement and sales of related IoT devices.
HarmonyOS: China's second largest operating system, ecosystem partners will face multiple growth opportunities.
According to the latest data from Counterpoint, in 2024Q1, HarmonyOS's global market share was 4% (up 2pct YoY), and its market share in China was 17% (up 9pct YoY, up 1pct MoM), surpassing iOS to become China's second-largest operating system.
Regarding HarmonyOS: With the construction of a native ecosystem, the demand for HarmonyOS app development talent has surged. It is expected to achieve more than 500,000 native HarmonyOS apps by the end of the year, plus IoT applications, which is expected to drive HarmonyOS app development and application migration and other needs.
Open-source HarmonyOS: The commercial version of the open-source HarmonyOS ecosystem partners is mainly aimed at the industrial field, and is realized through license authorization, software and hardware integration products, and other commercial release versions.