USA ban of Huawie : What are its results
Written By : Ayush Bharal
Huawie is currently one of the top smartphone selling companies. It has maintained its position for a couple of years. But it does not seem to continue any more.
The company has been banned by US government in the country and all the US based corporations have been informed by the govt. to stop all their businesses with Huawie.
Let's see what are the reasons for this ban and what effects does it have on the overall smartphone industry.
Huawie is a Chinese company and it does not only manufacture smartphones, but it has a great business in network equipment market. It has been known for the manufacturing of modems, servers, routers and so forth.
Its networking business was spreaded around the world from US to Europe and Australia. It was a renowned brand in the industry with a lot of customer base and many small businesses used their equipment.
All the things were going smooth until a FBI report came out according to which Huawie and another company in same work, ZTE which is also a chinese company, were working with chinese government.
The report claimed that both the companies' data centers were located in china and chinese government had the access to these data centers and all the user and company data of Huawie's customers was accessible for the govt.
Also, these two companies were sending all the information of host country to China. This information was being used for spying on people of target nation. As the network equipment are the backbone of the whole internet service and data transfer, thus it was a threat to national security.
USA realise it early and banned Huawie and ZTE products to be sold in the country. It was a bad news for both the companies but former suffered more than latter because after some time other countries including Australia, UK and some Europian countries also prohibited the sale of Huawie products.
This did not stop there, recently in the height of trade war with China, Trump administration completely banned Huawie and ordered America based companies to stop all the deals and agreements with some Chinese brands and specifically mensioned Huawie.
The ban created a lot of difficulties for the company as it had business relations with a lot of american companies. But the loss is not only of Huawie but for the othher side companies too.
Firstly, the company will lose the access to latest Android version as Google is an american company and cannot do business with the company. This also means that the google services such as Play store, Youtube, GMail, etc. will not be available on Honor and Huawie phones.
Also, other US based services such as Amazon and Microsoft Windows will not be available to Huawie to use. Additionally, a number of US based apps will not work in huawie phones.
Furthermore, Huawei will not have deals with American companies such as Qualcomm, Intel and ARM which supply the chip architecture and processors to the company.
Due to which, the laptop business of Huawei is also in danger. But does this means that Huawei will have to stop its PC business and Smartphone business if the ban continued? It seems not.
The ban will also affect the American partner corporates of the Chinese brand. Google, Microsoft, ARM, etc. will lose a part of their revenue which they get as licencing fees from Huawei.
If the ban continued, Huawei will still have the current or old version of Android available for its phones. Also, Huawei have its custom Android skin which is EMUI and the company could convert ot into full functioning OS.
As far as Processors are concerned, Huawie is currently manufacturing processors for its phones. This means that they should not rely on other companies.
But this ban seems an effect of trade war and it can be lifted if both the governments work together as it will affect the businesses of both the countries.
If you liked this article please share it with your friends with the share button below and if you have any queries ask them in comments.
Also check out some other articles which are related to it :
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• Dark Web Explained
• How does Google know an you so much ?
• Fitness Bands : Explained and some good deals
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Huawie is currently one of the top smartphone selling companies. It has maintained its position for a couple of years. But it does not seem to continue any more.
The company has been banned by US government in the country and all the US based corporations have been informed by the govt. to stop all their businesses with Huawie.
Let's see what are the reasons for this ban and what effects does it have on the overall smartphone industry.
Causes(History) of the ban
Huawie is a Chinese company and it does not only manufacture smartphones, but it has a great business in network equipment market. It has been known for the manufacturing of modems, servers, routers and so forth.
Its networking business was spreaded around the world from US to Europe and Australia. It was a renowned brand in the industry with a lot of customer base and many small businesses used their equipment.
All the things were going smooth until a FBI report came out according to which Huawie and another company in same work, ZTE which is also a chinese company, were working with chinese government.
The report claimed that both the companies' data centers were located in china and chinese government had the access to these data centers and all the user and company data of Huawie's customers was accessible for the govt.
Also, these two companies were sending all the information of host country to China. This information was being used for spying on people of target nation. As the network equipment are the backbone of the whole internet service and data transfer, thus it was a threat to national security.
USA realise it early and banned Huawie and ZTE products to be sold in the country. It was a bad news for both the companies but former suffered more than latter because after some time other countries including Australia, UK and some Europian countries also prohibited the sale of Huawie products.
This did not stop there, recently in the height of trade war with China, Trump administration completely banned Huawie and ordered America based companies to stop all the deals and agreements with some Chinese brands and specifically mensioned Huawie.
Significance of the ban
The ban created a lot of difficulties for the company as it had business relations with a lot of american companies. But the loss is not only of Huawie but for the othher side companies too.
Firstly, the company will lose the access to latest Android version as Google is an american company and cannot do business with the company. This also means that the google services such as Play store, Youtube, GMail, etc. will not be available on Honor and Huawie phones.
Also, other US based services such as Amazon and Microsoft Windows will not be available to Huawie to use. Additionally, a number of US based apps will not work in huawie phones.
Furthermore, Huawei will not have deals with American companies such as Qualcomm, Intel and ARM which supply the chip architecture and processors to the company.
Due to which, the laptop business of Huawei is also in danger. But does this means that Huawei will have to stop its PC business and Smartphone business if the ban continued? It seems not.
The ban will also affect the American partner corporates of the Chinese brand. Google, Microsoft, ARM, etc. will lose a part of their revenue which they get as licencing fees from Huawei.
The Future
If the ban continued, Huawei will still have the current or old version of Android available for its phones. Also, Huawei have its custom Android skin which is EMUI and the company could convert ot into full functioning OS.
As far as Processors are concerned, Huawie is currently manufacturing processors for its phones. This means that they should not rely on other companies.
But this ban seems an effect of trade war and it can be lifted if both the governments work together as it will affect the businesses of both the countries.
If you liked this article please share it with your friends with the share button below and if you have any queries ask them in comments.
Also check out some other articles which are related to it :
• Redmi Note 7S to replace Redmi Note 7
• What really happened with Samsung Galaxy Fold
• Dark Web Explained
• How does Google know an you so much ?
• Fitness Bands : Explained and some good deals
• Refurbished Phones Explained : Should you buy
• The True Power behind Gaming: CPU vs GPU
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