Huawei ban and its impact | Detailed explanation

So what exactly is Huawei ban? Rags to reaches stories are abundant on the internet where a poor person turns into a millionaire. But how can a global smartphone leader like Huawei which ranked 2nd in the market share after Samsung get doomed overnight?

This is huge news in the tech-industry. But how did it happen?

The Narrated Story

Although, the US government gave the reason that Huawei has been involved in data stealing. I personally don’t feel this is the real reason. Let me tell you why as we proceed.

USA (Trump) claims that the Huawei phones steal and send all the user data to the Chinese Government. This meant it was spying users in the USA. In other words, the servers of Huawei are located in China, and the USA does not want its data to get compromised.

Hence, Donald Trump banned all Huawei phones in the US market. Moreover, every American company is denied to deal with Huawei in any way possible.

The above reasons given by the American Government is not really convincing for me. I have two reasons here:

1] If Chinese Huawei ‘can’ be a threat to US data security then why not any other Chinese brand is banned? Right from Xiaomi to Lenovo, there are numerous Chinese brands. What is the reason that did they specifically target Huawei regarding data security when there is no proven evidence?

2] Facebook is an American company and it is found guilty to for data breaches every now and then. It is almost a daily news for Facebook. Why not ban or at least check Facebook to be in control?

The Real Story

Huawei Ban and its impact| Detailed explanation
Image: Huawei banned by US Government to deal with American companies.
Image by www.priteshpawar.com
Image: Huawei banned by US Government to deal with American companies

Well, that is because data breach is just a lame reason there. The real reason is an ongoing trade war between China and USA.

There were already some trade negotiations in progress. While, on 10th May, the US raised import taxes to 25 percent on billions of dollars’ worth of Chinese goods.

For revenge, China already retaliated with additional tariffs on $60 billion worth of US imports to China, including chemicals and frozen produce, raising the real danger of further escalation from the US.

This strongly hampered the US tech market. Companies like Apple and its suppliers which majorly rely on Chinese goods got hurt.

And here started the Trump War!

So what now?

Trump: If they kicked our most reputed smartphone brand Apple, we will destroy their largest smartphone brand Huawei.

And boom!

Huawei, the second largest smartphone company in the world got banned!

The Huawei Ban Impact

Huawei is such a huge company with 1,88,000 employees worldwide. It is mostly into the smartphone market and recently started with the laptop market.

Mr. Trump has abandoned all the American brands to deal with Huawei. But how will this ban impact Huawei, industry, and users?

1] Hardware

Certainly, Huawei was relieved for hardware section because they manufacture their own Kirin processors. They don’t rely on Qualcomm Snapdragon or MediaTek for their processors.

But do you know the bad part which came into light soon?

ARM is a company which designs the processors of Huawei. And of course, it denied working with Huawei as well.

2] Software

Huawei phones work on Android OS and Android OS is owned by Google. That automatically means that Google has to cut its ties with the Huawei brand.

Although Google has given a period of 90 days to push software updates on Huawei phones, there is no certainty after that.

Huawie is planning to make its own OS recently.

Not only smartphones, but Huawei laptops also run on Microsoft Windows which is again an American brand.

I don’t really need to tell the significance of Microsoft when it comes to personal computers.

3] Honor

For those who don’t know, Honor is a sub-brand of Huawei and it owns Honor. Naturally, this leads to ban on Honor smartphones as well.

I have myself recommended Honor phones in my previous articles. But don’t buy it now. At least not till the USA settles the situations. You can buy some other phone from that list. In case, you missed that article:

Best Smartphones under Rs 20,000 – May 2019

4] Users

Not getting Software support from Google means there will be no Android for Huawei. Also, no American apps like Google, YouTube, Facebook, Instagram for Huawei phones. I have just listed these famous apps. The list of American apps is long enough to empty your smartphone.

What about those Honor and Huawei phone users who just purchased the phones? Is there any fault of users in between the trade wars of two super countries of the world?

5] Other companies

Not only the users and Huawei brand, but this ban will also severely affect the related companies under Huawei which used to work for them.

There are so many components like battery, camera, lens, chips, metallic components, etc which Huawei imports for fitting in its phones.

I didn’t even mention the employees of those companies.

Recovery

I really don’t think Huawei will recover any time soon if the USA does not uplift this ban.

Although, the hardware part is not an issue for Chinese. But the main challenge lies with software.

Can Huawei OS compete Google’s Android? I might sound negative but this is extremely tough for any brand. How on Earth can you compete the massive Google Play store with millions of applications? Is it really possible for you to make alternatives to Google apps?

Samsung tried this and terribly failed. Even if we assume that Huawei proves to be an exceptional brand which will make its own software and hardware to compete Google.

How can they convince people to buy it? It is easier to sell cloned things in China after banning the original ones but not globally.

Politics can kill the biggest business possible. Try relying lesser on others.

P2

Similar Post: 5 Reasons why Xiaomi became the Top brand in India

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