Pages

Huawei Under Hot Waters After US Implements a Ban

Huawei business has struggled in 2020, after the novel Coronavirus and the ban imposed on the company by the Trump administration. United States listed Huawei on the blacklist claiming that Huawei has close relationships with the Chinese Government and the company is engaged in activities that are against US national security and Foreign Policy Interest and therefore no one in the US is allowed to sell the Huawei products unless receiving a special grant directly from the government.

The mobile market is expected to rise up to 1.36 billion units this year globally with almost a 9 percent increase since last year, with the leading companies being Apple, Samsung, Xiaomi, OPPO, Vivo, etc. accounting with a total share of 80 percent sale rate, but unfortunately Huawei’s sale is expected to decline this year as well all because of the ban imposed by the United States which will make it harder and harder for them to compete with the rest of the brands. Apart from that Honor, a company working in collaboration with Huawei announced to cut itself off from Huawei and work alone as a separate mobile phone company.

The question arises that why will the ban only implemented in the United States affect the company so badly?

Huawei spends more than 1 dollar out of 7 dollars from its 70 billion dollars’ budget annually buying equipment for the US companies alone and if the ban is implemented it is going to affect the company standing at the second position before Apple and right after Samsung, in the sales of smartphone globally rather harshly.

Apart from this as soon as Trump ordered to ban any sale of Huawei products in the United States, Android backed off on its contract with Huawei as well. On 19th May, 2019, Google announced that it will be following Trumps order and Huawei products will no longer work on the Android systems which immediately rose a tension in the company as well as the users because Huawei being the second best smartphone company in the world, is strongly dependent on Android as a software for all of its devices. Being cut off from the Android world meant that no Huawei phones will have any access to Google applications like YouTube, Google Drive, Play Store etc., which rose a tension among the crowd, but as soon as Google announced that phones registered before May 15 of 2019 will work just fine, the risen heat settled a bit.

While this may look okay for Huawei users around the world thinking their phones will work just fine, the ban implemented by the Trump administration has put Huawei under hot waters and its future still stands at stake.
Read next: How Much Did Internet Shutdowns Cost the World?

No comments:

Post a Comment