There are lots of bizarre things happening all around us. One such bizarre occurrence is news concerning Huawei, a multi-national Chinese company. One that has played a huge part in revolutionizing the digital landscape. Especially on the Eastern side of the world.
Huawei appears to be expanding. Now expansions, diversification, and integration into new markets product lines is a common business trait. It’s what keeps an organization in the front. However, some incidents of expansion are “per say” much more unbelievable than others. This scenario just happens to be one of them.
Huawei and LiDAR Technology
The Chinese Tech Multi-National has shown an interest in the automobile industry. To be more precise, the smart car industry. Huawei has made some rather sizable investments in the sector recently. Specifically, in LiDAR technology. LiDAR stands for Light Detection and Ranging, for those of you who do not know.
The problem with LiDAR technology is that it comes at a high price. Huawei is set on changing that. The company is currently trying to figure out how to create LiDAR technology in a cost-efficient manner. This announcement was made available to the public by Wang Jun, Huawei’s auto division head. KrASIA reported on the incident.
Other high ranking members of Huawei have also declared that the future is cost-effective. Huawei plans to use 5G technology to undercut radar sensor costs to $100. Currently, in the markets LiDAR sensors sell for a whopping $400 to $500.
To undercut the market prices down to $100 is a feat no doubt. Whether Huawei’s claims are the reality or simple puffery, only time will tell. However, with the sizable amount of investments being made, it appears that Huawei is definitely looking for yet another technological step forward. This might just be the next big break in the smart car industry.
Huawei’s History with the Car Industry
It’s no news that Huawei is not really a car manufacturer. Never has been. That’s one of the reasons why people are so skeptical of this move by the Chinese conglomerate. However, Huawei has fared well in its last few expansion projects. Such projects included work in the telecommunications and ICT sectors.
More specifically, in relation to those parts being offered to car makers at market competitive prices. So, Huawei’s recent expansion into the smart car industry is not the first time. The Chinese conglomerate has dipped its feet in these waters before.
The Future for Huawei
If Huawei does make a breakthrough regarding LiDAR technology that would be quite the achievement and a step forward in the smart car world. LiDAR technology id one of the most important elements of smart cars. The entire ability of a car to drive itself safely is dependent on it. The mere fact that smart cars can react faster to possible accidents than human-reaction time is due to the aid of LiDAR technology.
Thus, it is not news when we say that such technology is always high in demand. Companies such as Tesla are trying to differentiate themselves from the crowd. Tesla moves towards finding an alternative to the LiDAR price problem. Nonetheless, for now, and for the foreseeable future, LiDAR technology is still the industry standard and it is here to stay for much longer. If Huawei succeeds in its efforts to reduce the costs of the technology. Then LiDAR could safely solidify its place in the smart automobile industry.
What the future holds, none can say. It is rather strange for a company that made its name and fortune selling smartphones to move into automobiles. But history has had much more bizarre occasions of business diversification. Some paid off rather well while others didn’t. While Huawei seems to be ahead of their competition and seems to know what they’re doing, only time will tell if this gamble pays off.