Forget Gmail, YouTube, Google’s Chrome browser and the Play Store on your smartphone those apps are likely to disappear from future huawei handsets outside of china and that’s not all Huawei will also lose access to updates to Google’s Android operating system.
Google is taking direction from the US government which has added the Chinese telecoms company to a trade blacklist triggering restrictions that will make it difficult for a while to do business with American companies and it’s not just Google that has cut ties with Huawei the Chinese company won’t be able to buy us made chips for its devices any longer.
Right now Huawei buys about 67 billion dollars worth of components each year including about 11 billion from US suppliers like Intel, Qualcomm Xilinx and Broadcom according to the Nikkei Business Report tech experts have questioned Huawei’s ability to continue to function without cooperation from the United States.
The US government considers the company a national security threat and has warned its allies not to involve the Chinese firm in their 5g networks the White House claims Beijing could use the technology to spy on the West. Huawei has repeatedly denied that allegation, it says it’s going to fight back against what it calls the strangling moves of the US.
Huawei now plans to use backup chips it’s been developing for years it insists the impact will be limited.
I think that in the in the short term certainly this is going to have a big impact on Huawei’s business because consumers will think twice whether they should invest in a smartphone that a very soon might not have access to services through apps that we are used to that we take for granted like YouTube or Google Maps now of course both Google is unsure why they’re both insisting the already-existing Huawei smartphone users they still will be able to update apps and push through security fixes, update Google Play service and so forth but won’t get the new Android version and that’ll be later this year.
So, I should think that in terms of sales smartphone sales this year will have an impact and it’ll certainly knock Huawei’s ambition to overtake Samsung to become the best-selling smartphone brand in 2020.
That’ll be sort of derail to that plan even though Huawei has come out now in a statement and saying that it will continue to build safe and sustainable software ecosystem for users globally whether that helps or not in the short term I have my doubts in the long term though. This could actually lead to the creation of an Asian rival to Android because Huawei certainly has signaled that it’s prepared for the eventuality of being cut off from America earlier this year, the company’s consumer devices chief told German daily debate that we have prepared our own operating system that’s our plan B so we’ll have to see how that plays out and how fast exactly.
Meanwhile is it just Google that’s broken off with the Huawei. There are several other names emerging now very quickly one of them of course German semiconductor manufacturer Infineon which says that they suspended shipments to Huawei technologies and this just shows that Washington’s crackdown on Huawei is now causing ripples beyond US borders there’s also growing a backlash from Western countries possible risks of course when it comes to using Huawei for 5 G’s a next-generation technology for mobile networks which everybody is very keen on Huawei is the leader of 5g technology most advanced and very cheap but now it’s questionable whether people will go for it or whether they look for alternatives there’s also a European business Lobby I mean Europe so far has been quite sort of calm about it but they now say cases of European firms forced to transfer technology in China are increasing and that they think the regulatory environment in China is bleak.
So it’s going to be difficult to walk away yeah and a lot of dimensions to this issue and also how it will play into the trade dispute between China.