Core Viewpoint - Huawei has achieved significant growth with its HarmonyOS, surpassing 20 million devices in less than a year since the public beta of HarmonyOS 5, indicating exponential growth in user adoption and ecosystem development [6][20]. Group 1: User Engagement and Ecosystem - The rapid increase in HarmonyOS users reflects a strong user base that is willing to embrace new technology, which is crucial for the ecosystem's success [6][11]. - Users of HarmonyOS are not just passive consumers; they actively participate in the system's development by providing feedback and suggestions, which are essential for continuous improvement [15][19]. - The unique features and innovations offered by HarmonyOS attract users who are eager to explore new possibilities, differentiating it from other operating systems [12][14]. Group 2: Developer Support and Incentives - Huawei has launched various incentive programs, including cash rewards and exclusive offers, to encourage developers to create applications for HarmonyOS, demonstrating a commitment to building a robust ecosystem [20][22]. - The company has allocated significant financial resources, including a 10 billion yuan investment for AI ecosystem innovation, to support developers and enhance the platform's capabilities [20][22]. - By rewarding both users and developers, Huawei aims to create a sustainable ecosystem that fosters growth and innovation [20][22]. Group 3: Market Strategy and User Retention - Huawei's strategy focuses on exceeding user expectations through continuous product improvement and rapid iteration, which helps retain existing users and attract new ones [23][24]. - The company recognizes that user engagement is critical in a competitive market, and it actively seeks to build a loyal user base that can advocate for the platform [22][23]. - By creating a positive feedback loop where satisfied users promote the system, Huawei aims to establish a self-sustaining growth model for HarmonyOS [22][23].

Core Insights - Nothing, a mobile brand known for its unique design and accessories, currently does not plan to launch a domestic version of its phones in China due to the lack of internet services in its business model, which is essential for profitability in the competitive Chinese market [3][5][30] Group 1: Market Dynamics - Domestic smartphone manufacturers are facing intense price competition, leading to minimal profits from hardware sales, prompting them to explore alternative revenue streams such as pre-installed apps and advertising [5][30] - The average price of domestic smartphones is significantly lower than that of international brands, with some models priced at half or even a third of the cost of Apple and Samsung devices [5][26] - The trend of low pricing has resulted in manufacturers needing to find ways to monetize through software and services, which has led to a different business model compared to international counterparts [30][26] Group 2: Consumer Experience - Domestic smartphones often come with pre-installed applications and hidden advertisements, making it difficult for users to have a clean and straightforward experience [7][17] - Users frequently encounter intrusive ads within system applications, such as weather apps, which cannot be easily disabled, leading to frustration [11][13] - The presence of pre-installed third-party apps can clutter the user interface, with manufacturers earning fees for each app included, which can range from 0.8 to 5 yuan [15][17] Group 3: Software and Gaming - Some manufacturers create exclusive gaming channels that allow them to share in-game revenue, with profit-sharing ratios reaching up to 50%, surpassing the typical 30% "Apple tax" [21][24] - Users are often locked into specific gaming servers based on their device brand, complicating the experience when switching devices [21][24] Group 4: Regulatory Environment - The difference in system ecosystems between domestic and international phones is partly due to stricter regulations in regions like the EU regarding pre-installed applications [26][30] - The competitive landscape in China forces manufacturers to adopt aggressive strategies to maintain profitability, which may not be sustainable in the long term [30][31]