Impacts On Huawei and Opportunity To Regain

Huawei has an opportunity to regain lost floor in the battle for phone supremacy after President Trump reversed course on a campaign against the corporate that was hurting global sales.

Donald Trump mentioned over the weekend that he would raise some restrictions that barred American companies from selling vital tech and components to Huawei without a US government license.

“US firms can sell their equipment to Huawei,” as long as the transactions do not present a “great, national emergency problem,” Trump mentioned on the G20 summit in Japan on Saturday.

Huawei sold more smartphones than Apple (AAPL) within the first three months of 2019 and had ambitions of overtaking Samsung (SSNLF) as the world’s largest phone maker by 2020.

But the United States administration’s restrictions, imposed on May 16, caused an immediate dent in the Shenzhen-based firm’s international business. CEO Ren Zhengfei mentioned this month that Huawei’s global smartphone sales plummeted 40% between May 17 and June 16, in comparison with the previous 30-day period.

“We acknowledge the US president’s feedback relating to Huawei [on Saturday] and have no additional comment at this time,” the corporate mentioned in an announcement.

While it stays unclear which US firms will be allowed to sell to Huawei, analysts say a critical supplier for the corporate’s smartphone business right now is Google (GOOGL). The Silicon Valley tech agency restricted Huawei’s access to its Android operating system and apps last month to comply with Washington’s restrictions.

At a press conference last week, CEO Ken Hu mentioned: “in terms of where Huawei stands right now, our overall supply will not be affected.”

Even when the corporate can buy all of the United States tech and software needed for its smartphone business, the US-led pressure campaign against Huawei will have lasting effects.

“These retailers and customers, their confidence is shaken. Now there’s second-guessing, there are question marks around Huawei, is (a US export ban) going to become an issue again?” stated Ma.

“The injury to Huawei, the scar, is still there,” he mentioned.

Edison Carroll

Edison Carroll

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