HarmonyOS 7: Huawei bets on AI agents and overtakes iOS in China

Chinese tech giant Huawei has officially announced the seventh version of its operating system, HarmonyOS. The key focus of the new release is the integration of intelligent agents (AI agents), marking a significant shift in the company's strategy toward artificial intelligence.
The updated voice assistant Xiaoyi now manages over 2,100 system functions and can interact with 2,000 third-party AI agents. This creates a powerful ecosystem where users can perform complex multi-step tasks by delegating them to digital assistants. Essentially, Huawei is transforming the OS into a unified hub for AI services.
openPangu 2.0: The Foundation for the Ecosystem
Alongside HarmonyOS 7, a new version of the fundamental model family, openPangu 2.0, was also introduced. These models are designed to operate within the HarmonyOS ecosystem, enabling local data processing and high performance for AI agents. This is a strategically important step that reduces reliance on cloud computing and enhances user privacy.
The stable release of HarmonyOS 7 is scheduled for fall 2026. However, data from Counterpoint Research already shows impressive momentum: by the end of the first quarter, HarmonyOS's share of China's mobile OS market reached 19%, while Apple's iOS holds only 16%. This makes HarmonyOS the second most popular platform in China after Android.
Analytical Commentary: HarmonyOS's success in China is not just a technical achievement but also a result of import substitution policies and a move away from American technologies. However, global expansion remains uncertain due to a lack of support from Western developers. Nevertheless, the focus on AI agents and openPangu 2.0 could become the "killer" argument that attracts third-party developers to Huawei's ecosystem, creating a full-fledged alternative to Android and iOS.