Huawei’s situation is not going to change anytime soon

Effects of the relationship between Huawei China and the US

What will the future hold for Huawei now that President Biden has taken office? Well, maybe not much change, so it is still unclear. Some groups are hopeful that things will improve for the main Chinese OEM because Biden can be more understanding. But then it doesn’t always depend on the new president of the United States. The security of the country remains a priority and it appears that the United States Defense will maintain its position. President Biden’s personal choice for Commerce Secretary Gina Raimondo has already said there is no reason why the company and other brands should be removed from the U.S. trade ban list.

The story is still unfolding. We doubt things are going to get better anytime soon for Huawei. In reality, not many people realize the seriousness of the situation. We know that the production target for 2021 has been lowered. Huawei outperformed Samsung in the global market once in the second quarter of 2020 (Q2 2020), but that soon changed the following quarter.

Huawei was on track to be more successful with its Huawei Mate and P series. It was also supposed to enter the US market until President Trump decided to impose a trade ban. Soon, big companies like Google, Intel and Qualcomm decided to cut ties with Huawei.

Effects of Huawei’s trade ban in the US

It has been a domino effect that even made Huawei decide to abandon the Android system. It means that Huawei phones cannot officially use Google services and Android applications. Later, Huawei was also restricted to buying supplies from US companies and using technologies.

Huawei even decided to sell the Honor unit. It is now an independent business, but we have yet to see the sales figures. As for Huawei, its target production rate has dropped. Suppliers have been informed that orders will be reduced by more than 60 percent by 2021.

Last year, Huawei shipped 189 million phones. This year, it would only be around 70 to 80 million phones. Most of the phones to be produced will be 4G devices. 5G phones may be ready, but it can be difficult to buy 5G components. In the US, Huawei can still import from Qualcomm, but it is only limited to 4G smartphones.

Huawei has filed a lawsuit over the national security threat label by the FCC. There is no update yet, but we doubt things will improve. In the coming months, we have the Huawei P50 series and the Huawei Mate X2 that we look forward to. It would run on HarmonyOS, which some developers insist is still Android.

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