Will Huawei Come On Top When Without The Services From Google

2019-06-28

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Huawei Technologies is facing an abrupt test of Google’s move to restrain business with the Chinese telecom giant Huawei in the light of it being positioned on a US blacklist. Now, with their hands tied Huawei has their own plans to take over the market. They launched the Honor 20 series in London, UK ahead of the release of the phone in China.

They have already had a backup plan in stores with their own operating system in the process of making public. The development Comes after Google said it was looking to comply with the Trump administration’s move to add Huawei and 70 affiliates to the US Commerce Dept. Entity List, which comes as a blow to them and restrains Huawei to buy parts and component from US market without the approval from their Govt.

Google in a statement said they are complying with the Executive order by Trump administration and review the implications. Users of their services, Google play and security protections from Google Play Protect will continue to function on existing Huawei phones without giving specifications of what it means for the future for Huawei Devices.

The statement released by Google trails reports on Monday that the US internet giant had stopped business that requires the transfer of hardware, software and technical services to Huawei based in Shenzhen. World’s second-largest smartphone supplier Huawei is behind Samsung and are very much rely on the support from Android operating system by Google. Google’s app store will continue to work for current Huawei devices.

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Meanwhile, a line of top US companies including chip-makers Intel, Qualcomm, Xilinx and Broadcom have told their employees they will not supply Huawei until further notice. The news adds to fears that a cold war is beginning between the US and China in the technology sector with profound implications for Huawei, which is currently in the middle of everything.

Android is an open source operating system for mobile devices led by Google but using this does not automatically give Huawei devices access to Google apps and services. Google’s compliance with the US order could mean that future Huawei devices will lose access to popular Google services including the Google Play app store, as well as apps such as Gmail and YouTube – meaning overseas buyers may think again before buying a new Huawei handset.

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Huawei confirms it has built its own operating system. The worst possible situation for a company is to disrupt its supply chain, Huawei can go with open source android and build its own apps and services on top of it but that’s very unlikely to happen in a short period. Huawei had been gaining volume across many countries with its flagship models, the Nova series and Honor phones, but that demand for these devices would decline if Google services are not available on Huawei's future products. Huawei has made substantial contributions to the development and growth of Android around the world. As one of Android’s key global partners, they have worked closely with their open-source platform to develop an ecosystem that has benefited both users and the industry. The company “will continue to provide security updates and after-sales services to all existing Huawei and Honor smartphone and tablet products, covering those that have been sold and that are still in stock globally.”

Huawei has said previously that it has developed a proprietary operating system for smartphones and computers as a backup plan should US restrictions endanger its business relationship with Google. While lack of access to the Google Play Store for users in China is not an issue – Google services such as these are banned in the mainland – it would become a big issue in Western markets if blocked.

Huawei distributed a total of 206 million smartphones in 2018, 105 million of them to mainland China, IDC data shows, which means roughly half of Huawei's smartphone business could be affected by the potential loss of Google services in future. Huawei now finds itself in a similar situation to that of rival ZTE, which faced a nearly three-month ban from doing business with US companies last year after it was found to have breached terms of a US sanctions settlement. ZTE’s reliance on US components meant that operations virtually ground to a halt.