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Huawei US ban: Chinese tech giant gets a statement from Trump



Trump said this weekend he would lift some restrictions that prevented US companies from selling critical technology and components to Huawei without a US government license.

"US companies can sell the equipment to Huawei," as long as the transactions do not present a "major national emergency," Trump said at the G20 summit in Japan on Saturday.
Huawei sold more smartphones than Apple ( AAPL ) in the first three months of 2019 and had ambitions to overcome Samsung ( SSNLF ) as the world's largest smartphone manufacturer by 2020.

But the US administration restrictions imposed on May 1

6 caused an immediate damage to the Shenzhen-based international business . CEO Ren Zhengfei said earlier this month that Huawei's global smart phone sales fell 40% between May 17 and June 16, compared to the previous 30-day period.

"We acknowledge the President's comments on Huawei [on Saturday] and have no further comment at this time," the company said in a statement.

Although it is still unclear which US companies are allowed to sell to Huawei, analysts say the main provider of the company's smartphone business is now Google ( GOOGL ) ]. The Silicon Valley technology company limited Huawei's access to its Android operating system and apps last month to meet Washington's limitations.
  Huawei's place in the global technological ecosystem can make it too big to fail

"Assuming Google is not a problem and getting the license to sell to Huawei, it is a Huawei's huge sigh of relief, "said Bryan Ma, an analyst with IDC research firm.

Like most of the world's smartphones, Huawei devices use Google's Android operating system, which includes popular applications and services such as Google Maps and Gmail.

Without access to that ecosystem, Huawei's smartphones will be much less attractive to users outside of China, where most of Google's popular products are banned. About half of Huawei's smart phone sales last year came from outside China, according to research companies Canalys and IDC.

Over the past six weeks, international resellers and consumers were concerned about whether Google services and security updates would remain available on Huawei phones, according to Ma.

"Consumers obviously do not want to buy a phone that does not provide them with the service they want, and retailers will not take on a wealth of inventory that cannot sell," he said.

Google refused to comment on this article, referring to a previous statement that the company is "engaged with the Department of Commerce to ensure we are fully compliant with the requirements".

Existing Huawei smartphones, which still have access to Google's systems and software updates, can also lose their resale value in key markets.

One of Huawei's latest phones, P30 Pro, sells for € 999 ($ ​​1,130) in Europe. After Huawei's blacklist, most dealers offered just € 100 to buy back the phone, according to analyst Ben Stanton with research firm Canalys.

"Many customers were quite concerned about returning devices or switching brands after learning the device in their pocket had fallen in value," said Stanton.

Users "are now paranoid about these devices," he added. Huawei still needs 5G customers despite US pressure ” data-src-mini=”//cdn.cnn.com/cnnnext/dam/assets/190626035319-0626-ken-hu-01-small-169.jpg” data-src-xsmall=”//cdn.cnn.com/cnnnext/dam/assets/190626035319-0626-ken-hu-01-medium-plus-169.jpg” data-src-small=”http://cdn.cnn.com/cnnnext/dam/assets/190626035319-0626-ken-hu-01-large-169.jpg” data-src-medium=”//cdn.cnn.com/cnnnext/dam/assets/190626035319-0626-ken-hu-01-exlarge-169.jpg” data-src-large=”//cdn.cnn.com/cnnnext/dam/assets/190626035319-0626-ken-hu-01-super-169.jpg” data-src-full16x9=”//cdn.cnn.com/cnnnext/dam/assets/190626035319-0626-ken-hu-01-full-169.jpg” data-src-mini1x1=”//cdn.cnn.com/cnnnext/dam/assets/190626035319-0626-ken-hu-01-small-11.jpg” data-demand-load=”not-loaded” data-eq-pts=”mini: 0, xsmall: 221, small: 308, medium: 461, large: 781″ src=”data:image/gif;base64,R0lGODlhEAAJAJEAAAAAAP///////wAAACH5BAEAAAIALAAAAAAQAAkAAAIKlI+py+0Po5yUFQA7″/>

Beyond Google's offering services, Huawei phones are also dependent by US suppliers such as Qualcomm QCOM ) Broadcom ( AVGO ) Qorvo ( QRVO ) and Skyworks ( SWKS ) for the latest generation of technology that converts information and data into radio signals.

Huawei has said it started storage technology and components last year and waited for Washington to pet with an export ban.

At a press conference last week, Rotary CEO Ken Hu said "when Huawei stands right now, our overall supply is not affected."

Although the company is able to buy all US technology and software needed for its smartphone business, the US-led press campaign against Huawei will have lasting effects.

"These dealers and consumers, their trust is shaken. Now there is another guess, it's questioning about Huawei, is (a US export ban) again a problem?" Ma said.

"The damage to Huawei's scar is still there," he said.


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