Huawei Is Screwed Unless The US Changes Tack

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Last week, things started turning south for Huawei when Google announced that access to Android and the Play Store would be curtailed as a result of a trade ban imposed as part of a trade war between the United States of America and China. Google has been joined by a number of other tech companies. But while Google was a high profile loss, others are likely to be of far greater significance.

Along with Intel and Qualcomm, Huawei has been blackballed by the SD Association and the WiFi Alliance. While the loss of a major software partner is a big deal, Huawei has the resources to build its own operating system and its popularity in China means it has a strong chance of creating a platform that can replace and compete with Android.

And the loss of access to the SD card specification can be worked around. After all, the need to add memory isn't a big deal if you load a device up with enough inbuilt storage. And the market has spoken, to some degree, given the popularity of iOS devices.

But losing access to WiFi is a a major blow. It's pretty hard to make a device that can connect to wireless networks if you're not allowed to access the standard that's used.

Similarly, UK-based chip designer ARM has told staff to stop doing business with Huawei. Which effectively locks Huawei out of chip design that works with most of the mobile software around.

All of this highlights the interconnected nature of global supply chains and how the unilateral actions of one country can disrupt international companies. Huawei finds itself in a very challenging position, effectively cut of from access to standards that underpin the design of modern smartphones. And this was all triggered by the US government adding Huawei to a list - something that could happen to any company the US government takes a dislike to.

For now, if you have a Huawei device, it looks like it will still get security updates to Android and access to the Play Store. But Huawei's long-term future in under a cloud unless a deal can be entered into or the US government relaxes its policy.


Comments

    I've only got 1 Huewei product - a wireless broadband modem that I'm on contract for another 6 months or so. Granted I'm not in the US but with our close ties to Trump, it will be interesting to see if this device suddenly stops working... and what my ISP would do about it (if anything).

    Perhaps Huawei Is Screwed because the good citizens of the world are realising The Chinese government owned company is not such a good citizen. Why on earth did we forget our ethics just because we saved a little money buying China product.

    Methinks someone is massively underestimating Huawei's resilience, money and in shop tech.
    Granted, they are very suspect but don't underestimate them.

      Suspect? There is no evidence whatsoever. It is all a ploy by the US government to generate fear and loathing of Chinese products in a feeble attempt to protect the uncompetitive US manufacturing industries.

      The USA puts pressure on its 'partner' countries by threatening them with trade sanctions and tariffs, or other penalties, if they don't follow suit.

        Suspect doesn't mean guilty, it's not an indictment, it's a call for caution. Besides that, given the nature of their Gov't and the deep ties to their in-country tech companies, the world has a right to call them out!

    Five Eyes are working in lockstep again.

    This is going to backfire on the USA badly. Just like most things that Trump (the unstable moron) does, it is short-sighted, and irresponsible, and will end up hurting US companies and consumers.

    We take issue with China maybe spying on us.

    But at the same time have no issue what so ever when its Americans doing it.

    You cant be okay with one spying and not the other. This ban is nothing but Donald trumps America trying to shut down any competition. Americans cant compete on quality of product so they resort to petty tactics like this.

    This will backfire. Already Chinese consumers are dumping American products and buying chinese made products out of a sense of patriotism. China is one of the biggest technology consumer markets in the world and this will harm American companies.

    You only need to look at how US soy farmers to see how this will turn out.

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