Date: 1st June 2019
Ming-Chi Kuo, TF International securities analyst said on Saturday that the blacklisting of Chinese tech giants Huawei by the US government could be beneficial for Samsung and Apple.
President Trump last month announced that no US company would be allowed to trade with Huawei. The trade ban has resulted in the Chinese company finding it difficult to get supplies of components for its products and services. Consequently, Huawei has been forced to search for alternative suppliers.
According to analysts from around the world, Huawei is the second-largest smartphone brand in the world. However, the trade ban could result in unpleasant consequences for the company. Kuo said that the ban on trade with US companies could result in Huawei’s customers losing trust in the brand which could be highly destructive.
If the Chinese tech giant fails to find an alternative to the components provided by US companies its sales decline by 10 million a month. The company had more than two hundred million smartphones shipped during the last year. However certain reports claim that Huawei is in the process of designing its own operating system for smartphones that would support Android apps.
But Kuo believes that even if the ban is lifted the Chinese company would purchase an increasing number of components from its domestic market-based in China.
The analyst also set that the ban would affect the company’s 5g wireless network project as many components required for the same come from various US companies. These include Qrovo, Skyworks and Broadcom.
All these issues will ultimately benefit other smartphone makers like Samsung and Apple as Huawei would lose in non-Chinese markets, the analyst said.