Huawei May Have Expected Ban And Google Restrictions Beforehand
Sunday evening brought some bad news for Chinese tech giant Huawei as Google announced restrictions on the smartphone maker's access to Android upgrades and apps. Some analysts believe the Honor maker prepared for the worst.
Huawei has yet to make an official statement regarding Google's latest move but the latter said it was "complying with the order and reviewing the implications, BBC News reported.
CCS Insight analyst Ben Wood said the Chinese tech company has been "working hard on developing its own App Gallery" and many industry experts believe it is part of the firm's scheme "to control its own identity."
Aside from developing an App Gallery under the Huawei system, the company also revealed earlier this year that it has a "plan B" in case the worst comes in the form of a ban initiated by the United States.
The firm already developed its smartphones' processors and an operating system has been in the works although it is unclear when the company will roll out the OS dedicated for Huawei consumers.
Google's restrictions came days after U.S. President Donald Trump approved the ultimate blacklisting of Huawei from working with American tech firms. The White House's latest move will require the Chinese firm to get the U.S. government's approval before it can cooperate with companies in the United States.
On Saturday, a spokeswoman with the U.S. Commerce Department said the government may soften its stance against Huawei for the sake of existing customers. According to Reuters, the spokeswoman said existing clients who have been using equipment from the Chinese company may benefit from the potential temporary general license.
However, the Chinese smartphone behemoth will still not be permitted to purchase equipment or manufacturing parts from U.S. firms as part of the ban.
The spokeswoman further explained that American firms will also potentially be hit with the ban since they will need to obtain separate licenses if they want to retain business ties with Huawei.
Some analysts predicted that Huawei may set its eyes on other business destinations following the blacklisting and Google restrictions. While Trump supporters believe that China will suffer greatly from the ban and restrictions, some experts believe it won't just be the Chinese market suffering.
A CNN op-ed published on Friday indicated that Trump's latest tirade against Huawei may stall global plans to roll out 5G networks. The Chinese tech provider has secured 5G deals with other countries including some in the Middle East and Europe.
Micron and Qualcomm, both American tech giants, may also be largely affected since their business ties with Huawei have been cut off. On the other hand, Fitch Solutions analysts pointed out that Huawei has the capacity to use alternate equipment using its own systems with or without Trump's ban.