Here’s another addition to the Huawei saga. And since it’s a saga, we will start off with a recap to bring you up to speed.
This whole thing started when the executive order from President Donald Trump banned Huawei, making allegations of espionage.
They were then added to the States’ Entity List, which severs their access to Google and consequently the Android operating system.
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Widespread panic follows with people trying to sell off their Huawei phones and all that jazz.
But Things Seemed Smooth
Most expected Huawei to promptly crash and burn.
Instead, they revealed the OS they’ve been working on privately for use in the event that an important American man banned them on unfounded accusations of espionage and stopped them from using the Android OS by putting them on the Entity List.
To top it off, this Ark/ Hong Meng OS was reported to be 60% faster than the Android OS.
Chinese netizens had also shown their solidarity to the company, saying they’ll keep using Huawei, or even switch to Huawei for non-Huawei users.
The point of such a long recap is to show that the lack-of-an-OS threat and the fall-in-demand threat first presented now seem largely negated. In other words, they seem to be doing well.
Expressing Vulnerability
In the face of, according to Channel NewsAsia, “weeks of defiant comments from company executives who maintained Huawei was technologically self-sufficient”, Ren Zhengfei, the Huawei Technologies founder and CEO, admitted yesterday (June 17, Monday) that the impact on the company was more severe than expected.
Ren said that they had not anticipated the US will to “crack” the company would be “so strong and so pervasive”.
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“We did not expect they would attack us on so many aspects,” he said.
“We cannot get components supply, cannot participate in many international organisations, cannot work closely with many universities, cannot use anything with US components, and cannot even establish a connection with networks that use such components.”
How Bad is it?
With a US$104 billion revenue reported last year, it was expected to climb to US$125 billion this year. Instead, it dropped roughly 20% to about US$100 billion. Such a figure is expected next year as well.
But after that, Ren is hopeful of a recovery.
“In 2021, we will regain our vitality and (continue to) provide services to human society.”
The Chinese citizens have already made their stand clear, but unless the ban is somehow reversed, the predicted comeback will mean that the international consumer base also embraces the Huawei’s operating system as a contender against Android OS and iOS.
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That would certainly be a feat, but indeed amazing if achieved.
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