The trade war between China and the United States put the Asian society of Huawei in check. Measures taken by Donald Trump to halt the rapid progress of the Chinese giant seem to take effect, and the well-known mobile phone manufacturer has gone from Apple and Samsung, having suffered significant losses, like economic, and prestigious.
Origin of the conflict
On December 1, 2018, Huawei Chief Financial Officer Wanzhou Maine was arrested by Canadian authorities for extradition to the United States. The alleged violation of sanctions imposed by Washington against Iran. This fact caused tensions between the two countries.
Huawei, the global threat
The United States rushed to accuse the company of espionage. His intelligence services claimed that Huawei technology could function as a Trojan horse in Western countries, a system with which the Chinese government can obtain confidential data that would jeopardize security.
Donald Trump’s Veto
On May 16, the President of the United States declared a state of emergency in the country to ban companies in his country from using telecommunications equipment manufactured by companies that are believed to be spying on the United States.
The President expressed his decision by decree against the “foreign opponents” of the United States, but does not specifically name China. In a subsequent decision, the Department of Commerce included Huawei in the list of companies and people who are denied access to US technology.
Google is breaking with Huawei
On May 19, the American giant suspends its operations with Huawei and announces that it will stop updating your Android operating system for the phones of this company.
In addition, this meant that future Huawei mobile phones would not be able to include applications and services, such as Gmail, Google Maps or the Play Store. Soon after, major chip makers, including Intel, Qualcomm, Xilinx and Broadcom, also cut Huawei’s offer.
Drop in sales
Uncertainty and fears caused by this situation among consumers have had a significant impact on sales.
Although they did not initially recognize him, Tony Jin Yon, CEO of Huawei in Spain, recognized the negative consequences of the situation at the 5G development event.
“I’d lie if I told them that sales weren’t hurt, because last Monday they started to get damaged and they fell between 25% and 30% on our usual numbers,” he said, before adding that sales were quickly resumed.
The truth is that the latest data do not confirm this recovery. Apparently, Huawei has lost more than 50% of its market share in Spain in units, as evidenced by various sources from major Spanish distribution networks to the newspaper Expansión.
This rivalry was won by your competitors , Samsung and Xiaomi noted an increase in sales over the past weeks by about 50%, which is a very high figure in the case of a South Korean company.
Besides the fact that Huawei products are sold cheaper, they have lost their value. To good discounts they had to make (up to 40%), in order to avoid a catastrophic decline in sales, it is necessary to add that the descent was asymmetrical: Although they still sell a lot of cheap mobile phones, fewer and fewer customers are encouraged to buy devices A high-end company that weighs so much uncertainty.
False Veto Cancel
On June 29, the conflict seemed to end. “We agreed that US companies could sell Huawei products,” Trump said after spending nearly an hour and a half with Xi Jinping at the G20 meeting in Osaka, Japan.
However, on Tuesday, the White House announced that the Chinese firm Huawei is still not able to commercialize 5G technology (the last big technological horse) in the United States, although it is able to sell small components to American companies: “chips that are small technological components and do not affect to national security. ”
The Commerce Department continues this line by order of the federal agency, which confirmed that Huawei is still on the blacklist , Reuters reports, officials received an e-mail explaining how to deal with companies that are requesting permission to sell Chinese multinational corporation products, and This means that the Chinese company is still in a very difficult situation.