Huawei says 90-day reprieve on US ban will have no impacthttps://indianexpress.com/article/technology/tech-news-technology/huawei-says-90-day-reprieve-on-us-ban-will-have-no-impact-5931228/

Huawei says 90-day reprieve on US ban will have no impact

Huawei is facing sanctions amid the US-China trade war and the 90-day deadline extension is a temporary relief.

Huawei, Huawei 90 days, Huawei US ban, Huawei mobile phones, Huawei performance
Huawei was blacklisted in the US in May and has been added to the ‘Entity list’, which means Huawei has been effectively banned from doing business with US companies.

Huawei rotating chairman Eric Xu said that the 90-day reprieve by the US has had no impact on the company and that the situation is not as bad as the company had earlier predicted. The company estimates an impact of about $10 billion on smart devices sales.

Earlier this year, CEO and founder Ren ZhengFei had estimated a total loss of $30 billion of the total revenue, which was predicted to grow to about $130 billion compared to last year’s revenue of around $100 billion. However, Fei did not talk about smart devices separately. But to give a perspective, Huawei’s last year’s revenue from consumer business, which largely comprises of smartphones was $50.9 billion.

Huawei was blacklisted in the US in May and has been added to the ‘Entity list’, which means Huawei has been effectively banned from doing business with US companies including Google, Qualcomm, Intel, etc. The previous August 19, 2019 deadline of 90-days reprieve has been now extended to November 19, 2019.

“Now the situation is much better than we had forecasted. Now, we expect the impact of about $10 billion for only smart devices business,” Xu said. “90-day extension has had no impact on Huawei. We already had gotten used to living and working with anti-establishment frictions. We also believe it is not very likely for Huawei to be relieved from such a working state,” he added.

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Huawei is facing sanctions amid the US-China trade war and the 90-day deadline extension is a temporary relief. But Xu said that Huawei as a company as well its employees are fully prepared to be working with such an environment for a long time. Huawei has developed its own Harmony OS, which has been designed to work across platforms like smart TVs, tablets, smartwatches, etc. However, the company has clarified that it is not an alternative to Android.

Huawei is the world’s largest telecommunications equipment manufacturer and the second largest smartphone maker globally. As for the 5G trials in India, the government is yet to decide whether to allow Huawei in 5G trials. Meanwhile, ET reported that major telecom companies like Bharti Airtel, Vodafone, Reliance Jio could give a pass to the Chinese company when it comes to core elements of their 5G networks.

Disclaimer: The author is in Shenzhen, China attending Huawei AI Chip and New Open-Source Computing Framework launch conference on the invite of Huawei India