Core Viewpoint - Microsoft is facing significant challenges with its Windows operating system, leading to a substantial user loss and a shift towards AI investments, while a new competitor, HarmonyOS, is emerging in the market [2][3][20]. Group 1: Microsoft and Windows Challenges - Windows has lost 400 million users over the past three years, representing a decline of over 30% [3]. - The operating system has been criticized for various issues, including a chaotic interface, high memory usage, and forced updates that can lead to system failures [2][3]. - Microsoft is undergoing massive layoffs, with approximately 9,000 employees affected, marking its largest round of layoffs in recent months [9][10]. Group 2: AI Investment and Workforce Changes - Microsoft plans to invest $80 billion in AI infrastructure by the 2025 fiscal year, with 20% to 30% of its code now generated by AI [14][12]. - The company is restructuring its workforce to align with AI advancements, indicating a shift in human resource needs due to AI's impact on job functions [12][13]. - Other tech giants like Google, Meta, and Amazon are also reducing their workforce while focusing on AI, with a cumulative layoff of over 100,000 employees in the past two years [18][19]. Group 3: Emergence of HarmonyOS - HarmonyOS, developed by Huawei, is gaining traction as a new operating system, having surpassed 1 billion users across smartphones and IoT devices [22]. - The system has evolved to no longer rely on Unix or Linux, marking a significant shift in its architecture [22]. - HarmonyOS is seen as a potential disruptor in the PC market, with its recent launch of Harmony computers aiming to redefine personal computing [25][26]. Group 4: Market Dynamics and Future Outlook - Windows' market share in the PC sector has fallen below 90%, with a notable decline in active devices running the OS [20]. - The rise of HarmonyOS and other competitors poses a significant threat to Microsoft's dominance in the operating system market [20][26]. - The ongoing evolution of HarmonyOS reflects a broader trend of domestic operating systems gaining independence and strength in the tech landscape [26].

Core Viewpoint - Huawei's HarmonyOS ecosystem is rapidly expanding, with significant growth in developer engagement and community contributions [1] Group 1 - As of June 20, the number of registered developers for HarmonyOS has surpassed 8 million [1] - The code base for OpenHarmony has exceeded 130 million lines [1] - The number of community contributors is approaching 9,000 [1] - Huawei has announced the launch of developer Beta testing for HarmonyOS 6 [1]

Core Insights - The article discusses the evolution of the internet traffic ecosystem and the development trends of the HarmonyOS ecosystem, highlighting the challenges faced by the mobile internet and the transformative potential of HarmonyOS as a key player in the next-generation traffic ecosystem [5][7][19]. Internet Traffic Ecosystem - The mobile internet is experiencing a growth bottleneck, with a compound annual growth rate of only 0.08% in the number of independent devices over the past five years, indicating a saturation of the market and a decline in user dividends [7]. - The current traffic distribution model is limited by ecological fragmentation and technological bottlenecks, necessitating a shift towards a more integrated and efficient traffic ecosystem [10][11]. HarmonyOS Development Trends - HarmonyOS is positioned as a major builder of the next-generation traffic ecosystem, leveraging its distributed architecture to connect multiple devices and provide seamless user experiences across various scenarios [19][22]. - The ecosystem's core capabilities include full-scene coverage across multiple devices and AI-driven efficiency improvements, which enhance user experience and operational efficiency [25][30]. Advantages of HarmonyOS Ecosystem - HarmonyOS has become the third-largest mobile operating system globally, creating a competitive landscape alongside Android and iOS [28]. - The ecosystem serves as a core entry point for the Internet of Things (IoT), facilitating commercial monetization and forming a complete business loop [30]. - The system's lightweight application model and high-level security certifications enhance user trust and experience [34][37]. User Insights - The typical Huawei user is predominantly male, aged 25-45, with a high income and education level, primarily located in tier-one and new tier-one cities [60][62]. - Users exhibit a strong preference for Huawei's own applications, showing higher acceptance of online advertisements and a significant potential for consumption in categories such as automobiles, luxury goods, and 3C products [75][81][87]. Marketing Solutions - The "Whale Harmony Dynamics" platform integrates HarmonyOS resources to enhance marketing effectiveness across various industries, including automotive, luxury goods, and health [96][99][103]. - The platform utilizes AI and big data to create personalized marketing strategies, ensuring efficient customer engagement and conversion [103][105].

Investment Rating - The report does not explicitly state an investment rating for the industry Core Insights - The mobile internet is facing a growth bottleneck and user dividend decline, with the need for technological innovation and ecological restructuring to unlock flow value [5][14] - The HarmonyOS ecosystem is positioned as a key builder of the next-generation flow ecology, leveraging full-scene intelligent collaboration and data integration to drive value leaps [5][24] - The report highlights the six advantages of the Harmony ecosystem, including being the third-largest mobile operating system globally and forming a commercial monetization closed loop [34][51] Summary by Sections Internet Traffic Ecology and Harmony Ecosystem Development Trends - The mobile internet is experiencing a slowdown in growth, with the total effective usage time averaging around 161.28 billion hours per month, and the number of independent devices showing a compound growth rate of only 0.08% [16][18] - The fragmentation of traffic entry points and technological bottlenecks are hindering the release of flow value, necessitating a full-scene integration approach to overcome these challenges [20][22] - The Harmony ecosystem is continuously innovating, with its core capabilities being full-scene multi-terminal coverage and AI-enhanced service efficiency [34][39] Whale Hong Momentum Value Insights: Flow - Whale Hong Momentum's self-owned media matrix achieved a peak MAU of 373 million in 2024, with a flow growth rate of 5.9%, indicating strong user engagement and retention [80][81] - The user demographic is primarily high-net-worth individuals aged 25-45, with a significant portion residing in first- and new-first-tier cities [8][80] - The advertising acceptance rate among users is 71.8%, with a strong conversion intention post-advertisement, providing brands with a comprehensive marketing capability [8][80] Whale Hong Momentum Value Insights: User - The user base shows a significant preference for using proprietary apps, with a high acceptance of online advertisements, particularly in categories like luxury goods and automobiles [5][8] - The report emphasizes the need to fully explore the marketing value of time-segmented scenarios, as user activity peaks at different times throughout the day [89][90] Whale Hong Momentum Industry Solutions - The Whale Hong Momentum integrates various media resources to create a unified traffic entry point, addressing the inefficiencies of fragmented mobile internet traffic [76][77] - The report outlines the importance of breaking down ecological barriers and enhancing cross-platform user behavior tracking to improve flow utilization [77][80] - The AI-driven intent framework enables efficient integration and precise distribution of traffic across devices, enhancing the overall user experience [76][77]