Huawei accounts for the second largest smartphone market share in the world with experts claiming that the company could dethrone Samsung as the 'world's number one smartphone maker as early as 2020. However, the US war on Chinese tech firms may have put a significant dent in 'Huawei's plans to reach ''rank one''.
Google recently cut off Huawei's Android license in accordance with a Trump administration order that restricts US companies from selling components and software to the Chinese smartphone maker.
However, the US Commerce Department delayed some of the consequences of that order by 90 days, a decision which will allow Huawei Technologies to acquire American-made goods to maintain existing networks and provide software updates to current handsets.
Google revoking Huawei's Android license will have far-reaching effects on the company's growth. And, while existing Huawei users will continue to reap the benefits of Google's mobile platform for the next 90 days; it is highly unlikely it will continue for much longer as the switch in tactics seemed to be aimed at giving telecom operators that rely on Huawei hardware adequate time to make other arrangements.
As things stand, existing Huawei users will still have access to 'Google's Play Store and Play Services but won't receive any further Android updates. New Huawei users, on the other hand, run the risk of not having access to both the Play Store and Google's Play Services indefinitely. This will make selling Huawei handsets outside China close to impossible, dramatically affecting the company's ambitions to become the leading smartphone brand worldwide.
In response to having its licensing revoked, the company issued a statement: "Huawei has made substantial contributions to the development and growth of Android around the world. As one of Android's key global partners, we have worked closely with their open-source platform to develop an ecosystem that has benefitted both users and the industry."
And, while Huawei still has the option to use Android's open-source platform (AOSP); Google has been chipping away at all of AOSP's attractive components. Features like Google Maps, YouTube and the complete ecosystem of third-party Android apps depend on 'Google's licensing agreement. For now, it seems like the Huawei faithful will just have to hope and wait for a resolution in the US-China trade dispute.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
