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Despite sales falling for the ninth consecutive quarter in Q2 2019, Huawei still managed to take a record 38.2 percent of the market. So, despite the gathering storm clouds on the international horizon, it’s still fair skies in China.
Even though it’s world known fact that Apple products are “made in USA” but assembled in China – it didn’t stop US President Donald Trump to impose sanctions to Chinese companies (every and each one of them) including the 34% year-on-year growth and 14% of market share company – Huawei.
The year 2019 has not been a good one for Huawei. Everything started with the US accusations of Huawei spying on US corporations. Trump administration then decided to launch a “one-two punch” combo in its fight to ensure that national security is not compromised in US telecoms infrastructure.
By putting Huawei on a government blacklist, the US has effectively cut off “Huawei’s oxygen supply” by limiting its access to some hardware and software from American companies.
Let’s not forget that 2018, Huawei’s CFO Meng Wanzhou, was arrested on accusations of violating US trade sanctions on Iran, and is still fighting about possible extradition to the US.
In May this year, Huawei was added to the US government’s “Entity List”, that is forbidding US companies to have any business with it claiming that Huawei uses its products to spy on its users, including business institutions as well.
However, their latest Mate 30 Series were shipped with Android operating system that is open-source but, without some key apps as Play Store, Gmail, Gmaps etc. Be it as it may, these repercussions are affecting mostly European (and American) users. And they are a minority because the majority of Huawei users are in China where Google doesn’t have wide acceptance at all.
The Chinese market for smartphones is huge. As per Canalys’ data, the Chinese market accounted for 396 million units sold, and that single market alone accounted for a little under 30 percent of the total of 1.4 billion smartphones shipped globally in 2018.
The CEO of Huawei’s consumer business division Richard Yu unveiled its in-house developed, Android-rivaling Harmony OS to great heights and acceptance by Chinese users. He explained Huawei’s modular and more-secure-than-Android Harmony OS is capable of powering a multitude of devices from the smallest wearables and smart home widgets all the way up to automobile infotainment systems and, of course, smartphones.
However, he stressed out that Huawei would still like to work with Android, given the two companies’ long working relationship.
Be it as it may, the truth is that Huawei, like most of every and each Chinese company, doesn’t need the rest of the world to succeed. At the end of 2018, China had over 700 million smartphone users, and that’s just over half of its 1.4 billion population.
We already reported how Robert Strayer, deputy assistant secretary of state for cyber and international communications and information policy said US President Donald Trump would not relax the ban on Huawei Technologies in exchange for a better trade deal with China. However, most of the companies actually want to collaborate with Huawei and it is obviously not something a person (not even Trump) can obstruct.
It is an opinion that if Huawei even somehow (and it will) employ apps as are Facebook, YouTube or Instagram it will show that America is not a king of the castle anymore and that its time of ruling everyone might have come to end.