As some of you may know, Huawei has been planning to overthrow Samsung next year, and become the world’s number one smartphone manufacturer. Well, the US trade ban may prevent the company from achieving that, so Huawei is reassessing its plans, according to South China Morning Post.
The US trade ban raised some serious questions about Huawei’s access to services that are crucial for international sales, said the company’s senior executive. The US barred American companies from supplying Huawei, and that is a serious issue, said the president of HONOR, Zhao Ming.
Mr. Ming also said that it’s too early to say whether Huawei will be able to overthrow Samsung next year, as the situation is still fresh, and things could get resolved in the near future. Hardware issues are not the only ones that Huawei is dealing with at the moment, as Google also suspended Huawei’s access to future Android updates.
Huawei did say that it is working with Google in order to amend the issue, even though we don’t see how will they do that considering that the ban applies to US companies, and Google is a US-based company. Huawei was granted a 90-day grace period to continue its business, before the ban goes into full effect.
Android may be the largest problem for Huawei, in fact, as its smartphones are based on Android, and even though Huawei is making its own operating system, many users may stop using its phones without Android. The US President, Donald Trump, did say that Huawei’s issues could be resolved with a new trade deal with China, so there’s still hope that the ban will be lifted in the near future.
Foxconn actually stopped several production lines for Huawei phones as the company reduced orders for new devices. All in all, this whole situation has created quite a problem for Huawei, and if it doesn’t get resolved, chances are Huawei’s business will suffer quite a bit. Reports are already claiming that Huawei’s shipments fell quite a bit, since the ban was announced.
Even assembling its own Kirin-branded chips could prove to be an issue for Huawei, as the company is using ARM’s architecture, and ARM has connections to the US companies in that regard as well, which is a problem.
Huawei was the second-largest smartphone manufacturer in the world prior to this ban, and it probably still is. We will not know what the situation is like exactly until market research companies share their data.
HONOR’s president Zhao did say that all the difficulties make the company stronger, as he’s trying to show that the company is ready to deal with the situation. If Huawei ends up being cut off from future Android updates, that will affect the market competition quite a bit, and it will leave Samsung without a direct competitor, at least when Android is concerned. In the end, that’s not great for consumers, of course, the more competition, the better.