Huawei, a major provider of Information and communications technology and smartphones is in the news recently as Donald Trump announced the ban on this popular telecom company. The world’s largest producer of telecommunications networking devices and the second most popular brand for smartphones is going through tough phase.
As per the sources, the telecom company is suspected to implement back door on its equipments to extract important information of various countries and organizations. This is the main reason that the US companies avoided the use of networking device of Huawei in 2012. On May 15, the firm was listed in the Entity List of “Bureau of Industry and Security” (US Department of Commerce) following an official order from President Donald Trump effectually banning Huawei from the communications networks of United States.
Impact on the Tech Industry
The commerce department of US said that they would provide a reprieve for three months that will let Huawei to continue its business with the American companies. However, this does not uphold lift on the ban and is expected to harm global tech industry drastically. As soon as the news was spread, Google declared to terminate licensing its OS of Android Mobile to the telecom giant. Other companies Qualcomm, Intel and Broadcom stopped supplying crucial hardware equipments that are required to make its equipments properly operational. If you are a current user Huawei device like smartphone, your Google apps will be working as it is. Nevertheless, there will be no future updates of the apps from the Playstore.
Though this is a huge shock as the government ordered ban on Huawei, the company is preparing itself to be in the battle of being the top most smartphone brand. The company is planning to launch its own Operating System (OS) in the upcoming months. With the global fallout, there is a doubt that the people will be interested in buying any devices from this company.
As the Apple was initiating to create some advancements in meeting demand challenges in China, the Huawei ban has created a disturbance arising new risks for the former. This incepted the Apple Boycott movement in the country where the Chinese customers feel that they should buy domestic products instead of products manufactured in foreign organizations.
There has been a slight decrease in the growth of Huawei in April and is expected to worsen as the top companies dissolved their partnership with Huawei. Ren Zhengfei, the founder of Huawei was all set to fight this difficult situation which can be evaluated from the statement. According to the statement, their mass production is vast and will continue working towards serving their customers globally in spite of ban leading them to be in the Entity List soon.
Well, the fallout of Huawei has started showing impacts and its survival is now a question. Still, the spirit and positivity of the company’s creator provide a little hope to get a new beginning of the firm in the next couple of months.