In a surprising turn of events, Chinese electronics giant Huawei appears to be on the cusp of overtaking Apple in China's smartphone market with its homegrown operating system, HarmonyOS. According to a report from tech research firm TechInsights, HarmonyOS is expected to outpace Apple's iOS in China this year, marking a significant milestone for Huawei's resurgence.

Huawei's decision to develop its own operating system gained prominence following U.S. sanctions imposed on the company. Previously, Huawei relied on the Android operating system for its smartphones but, in August 2019, the company unveiled HarmonyOS as a strategic "Plan B" following its placement on the U.S. Entity List. This move aimed to ensure Huawei's independence from U.S.-originated hardware and software.

The successful launch and adoption of HarmonyOS signal Huawei's capability to maintain its technical expertise despite facing U.S. sanctions. To further solidify its position, Huawei is now preparing to abandon Android entirely, with the next update of HarmonyOS ending compatibility with Android apps, creating what the company refers to as a "pure" operating system.

In response to this transition, Chinese tech companies are making efforts to develop HarmonyOS-compatible versions of their apps. Companies like Alipay owner Ant Group and McDonald's China are reportedly ramping up efforts to hire developers skilled in HarmonyOS.

As of August, Huawei announced that over 700 million devices were running on HarmonyOS, with more than 2.2 million third-party developers already creating apps for the platform. This growth in HarmonyOS usage coincides with Huawei's successful return to the 5G smartphone market, exemplified by the popularity of its Mate 60 Pro released in August last year. Despite the U.S. sanctions on both Huawei and China's broader chip industry, the Mate 60 Pro garnered exceptional sales, with 1.6 million handsets sold in the first six weeks, as reported by Counterpoint Research.

Huawei's resurgence could pose a challenge for Apple, especially considering China's significance as one of its most important overseas markets. Sales of Apple's iPhone 15, released shortly after Huawei's Mate 60 Pro, underperformed during its initial 17 days on the market in comparison to previous models.

Adding to Apple's concerns, Chinese authorities recently introduced new regulations that require all programs on Chinese app stores to obtain a government license, including Apple's App Store. Once the grace period expires in March, Apple may be forced to remove thousands of apps from its Chinese store, further impacting its position in the Chinese market.

With Huawei's HarmonyOS gaining traction and Huawei's Mate 60 Pro's exceptional sales performance, it is evident that the Chinese company is resolutely positioning itself to challenge Apple's dominance in China's smartphone market.