Economy

Huawei founder: USA blacklist will have no effect on sales numbers

Huawei founder: USA blacklist will have no effect on sales numbers

And now it remains to be seen how the trade war will be resolved, and whether Huawei will be allowed to do business with firms in the USA going forward.

It will now allow Huawei to buy goods from USA companies for the next ninety for the sake of network maintenance and software updates for existing Huawei devices.

Mr Trump's ban could bring App Gallery, and Huawei's broader smartphone expansion plans, to a grinding halt.

It buys about $67 billion worth of components annually, including about $11 billion from USA suppliers, according to a tally by The Nikkei business daily.

Complying to the new federal directive, Google has blocked Huawei's future access to Android updates.

Huawei Technologies Co. said it's working on its own operating system for its mobile handsets and will consider rivals to Google's Android, after the USA blacklisted the company, threatening its partnerships with chip, component and software suppliers.

Monday's announcement said the authorization was created as a temporary general license, in effect until August 19.

On Tuesday, the US Commerce Department gave Huawei a temporary license to continue to buy US goods for 90 days in order to maintain its telecom networks and provide software updates to its smartphones.

The 90-day license means Google can work with Huawei again on smartphone updates. They may not be able to use any OS that contains copyright belonging to a USA company. The move is ostensibly created to allow Google to continue providing updates to Huawei devices, helping protect users from security risks, and to keep phone networks online. Existing phones will function as always, but they may no longer be privy to future software and security updates.

Its own platform, now undergoing trials, is named "HongMeng" and "will gradually replace the Android system", China's state-owned Global Times said Monday, citing other local media reports without more details.

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"The goal seems to be to prevent internet, computer and cell phone systems from crashing", said Washington lawyer Kevin Wolf, a former Commerce Department official.

Huawei shipped some 59.1 million handsets, equivalent to 18.8 per cent share of world sales, according to analysts' figures from the first quarter of 2019.

How Will The Ban Impact Huawei's Business?

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However, this move will greatly damage the brand's appeal to consumers outside of China. The trade war has already led to some consequences such as multiple companies moving as much as half of their production outside of China to other Asian countries.

Huawei's smartphone rival Apple could be particularly vulnerable to Chinese counter-measures as almost 20 percent of its sales are in China and it relies heavily on Chinese factories for production.

The news that Google has been forced to withdraw Huawei's licence for its Android operating is likely the biggest tech story of the year.

Either way, both solutions will definitely take time.

Huawei founder Ren Zhengfei on Tuesday shrugged off USA attempts to block his company's global ambitions, saying the United States underestimates the telecom giant's strength.

However, the company is still not allowed to launch any new products that require technology from any US-based company.

This ban was the result of an executive order that prevents US companies from purchasing telecommunications equipment from foreign companies that are deemed a national security risk.