Google is reportedly about to deliver a knockout blow to Huawei

Google is reportedly about to deliver a knockout blow to Huawei
In what could be a huge blow to Huawei, Reuters reports today that Google will suspend any business it has with Huawei except for hardware and software dealings that are covered by open source licenses. This means that Huawei will "immediately" lose access to Android updates and the next series of Huawei phones will not come with the Google Play Store and other Google apps including Gmail. While Android is an open source operating system that is free for phone manufacturers to use, Google does charge those companies-like Huawei-a licensing free to include its Android app storefront and other apps on their phones.

Google is reportedly taking these actions after President Donald Trump used an executive order to declare a national emergency over threats to U.S. technology last Thursday. At the same time, the company and 68 of its affiliates were placed on the Bureau of Industry and Security (BIS) Entity List. This prevents U.S. firms from selling parts, components, hardware, and software to Huawei without obtaining a license from the U.S. government.

While Huawei spent $11 billion procuring parts from U.S. based companies last year like Qualcomm, Intel, and Micron, the company does design its own Kirin chipsets and Balong modem chips for its high-end phones. Both are manufactured by TSMC.

Huawei could have its own Android alternative ready to go


The move by Google certainly could dash Huawei's attempt to be the largest smartphone manufacturer in the world by next year. After shipping over 200 million handsets in 2018, and keeping up the momentum in this year's first quarter (by delivering 50% more units year-over-year), Huawei is now number two on the list after surpassing Apple; Samsung is the current leader.

Huawei's current top-of-the-line phone, the P30 Pro

Huawei's current top-of-the-line phone, the P30 Pro


The anonymous source cited by Reuters says that Google is internally discussing exactly which of its services it will deny to Huawei. The Chinese manufacturer is said to be studying the impact of being placed on the Entity List. Yesterday, company founder and CEO Ren Zhengfei said that the U.S. actions would slightly reduce Huawei's revenue growth this year to under 20%. He also said that Huawei has been preparing for this type of action by the U.S. Besides designing its own chips, there have been reports in the past that Huawei was developing its own alternative to Android. Earlier this year, the head of the firm's consumer technology division, Richard Yu, said that Huawei already has its own operating system ready. However, that same report noted that Huawei doesn't want to be put in the position of employing its own operating system. Huawei's next high-end line, expected to include the Huawei Mate 30 and Mate 30 Pro, will be affected if Google does officially announce that it will halt business ties with Huawei.

Last year, the U.S. government placed an Export ban on ZTE that almost destroyed the company. ZTE was not allowed to purchase any hardware, software or components from the U.S. until an agreement was finally reached. Before the ban, ZTE was the fourth largest smartphone vendor in the U.S., but dropped off the list following the imposition of the ban and has yet to return.

The U.S. moves against Huawei come against the backdrop of a major trade war between the U.S. and China. Last week, the president raised the tariffs on hundreds of billions of Chinese imports from 10% to 25%. He also threatened to include smartphones and other tech products on the next tier of products from China to receive a 25% tax. While U.S. businesses and consumers bear the cost of the tariffs, they also have had a negative impact on the Chinese economy.

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140 Comments

1. RevolutionA

Posts: 390; Member since: Sep 30, 2017

The best thing to happen this decade

16. raky_b

Posts: 369; Member since: Jul 02, 2014

True. If they do that, my next phone will be made by Huawei, 100%

21. umaru-chan

Posts: 339; Member since: Apr 27, 2017

This is bad for the entire phone eco system. Competition and innovation Will be hampered. Other than some ultra nationalist and over zealous Samsung fanboys who were recently felt threatened by huawei's incredible rise pretty much everyone will be sad.

25. vincelongman

Posts: 5623; Member since: Feb 10, 2013

Never bought a Huawei phone, but they've been amazing for the ecosystem e.g. In terms of hardware: hiring ex-Nokia employees and partning with Sony to developing large 1/1.7" 40MP RGGB and RYYB sensor, folded telephoto optics, Mate X, Kirin SoCs, 40W charging, acoustic display, ... In terms of software: Night Mode, Super Resolution/Hybrid Zoom, improvements to F2FS, desktop mode They are a major reason why Samsung to introduce their to Galaxy M series this year

26. Youngquenga41

Posts: 63; Member since: Apr 03, 2017

What does Samsung have to do with what's happening to Huawei, (apple) and the US government clown?

70. vincelongman

Posts: 5623; Member since: Feb 10, 2013

Lol why so aggressive? If you read Samsung's recent earnings call, they basically said their low to midrange phone sale fell due to intense competition (obviously not stated, but from Chinese OEMs like Huawei, Xiaomi, BBK, ...) Hence they've introduce the Galaxy M series

141. Youngquenga41

Posts: 63; Member since: Apr 03, 2017

What does Samsung have to do with the US government blacklisting huawei?

59. sgodsell

Posts: 6835; Member since: Mar 16, 2013

The real problem is Huawei is tied to China, period. Huawei mobile smartphones in China don't come with any Google services or apps to begin with. Yet China and Huawei want to make smartphones and sell them globally to the rest of the world, and Huawei mentioned before this article, that they were going to make an sell Android smartphones without any of Google's apps or services. If that's the case, then Google did the right thing. Huawei and China always want things their way. Good riddance to a crappy company.

113. hamaidx

Posts: 82; Member since: Apr 28, 2015

Yes... its the same company which gave google a Hardware in the name of Nexus 6P.. one of the most loved phone .... it's ok... Its CALLED AS "economic terrorism" - I Just hope everything sorts out itself before the WWIII.

117. sgodsell

Posts: 6835; Member since: Mar 16, 2013

You have got to be kidding. "Google and Huawei agree to pay owners of faulty Nexus 6P devices up to $400. Google and Huawei have preliminarily agreed to settle a class action lawsuit from Nexus 6P users who say their devices experienced a bootlooping issue that caused the phones to shut down randomly, regardless of the battery level." Like I said good riddance to a crappy company like Huawei. Who manufactured the Nexus 6p again? That's right Huawei.

134. TheOracle1

Posts: 2027; Member since: May 04, 2015

But they didn't manufacture the Pixel 3a which is brand new and randomly shutting down too. So who's to blame? That's right, Google!

140. jacky899

Posts: 392; Member since: May 16, 2017

Any company will have problems from time to time. Just look at Samsung and their Note 7 and the Galaxy Fold or even Apple's bendgate and antenna gate. With that said, I've been using the Nexus 6P for many years and has always run smoothly with no problems and a camera that matches even current gen flagships. Pretty impressive considering the age and price I bought it for.

34. d1g1te

Posts: 57; Member since: Oct 04, 2016

I agree. Let's together show Trump that plaing almighty God is bad idea. Nobody will be messing up with my right to choose phone brand I want by stupidly banning companies like this, because they do 5G better or their phones are selling well, but they don't come from US.

91. kenemu

Posts: 26; Member since: Oct 22, 2011

well said...CCP and Huawei pose real threats to US and the world.

123. jacky899

Posts: 392; Member since: May 16, 2017

The ONLY surveillance hack ever found in Huawei's equipment to date was implanted by the NSA. Edward Snowden leaked a document in 2012 that show how the NSA's Tailored Access Operations unit conducting covert operation “Shotgiant” beginning in 2007 had succeeded in infiltrating computer servers in Huawei's headquarters in Shenzhen, China by 2010. The success allowed the agency to spy on email communications of Huawei employees, including founder of Huawei, as well as steal the source code for specific Huawei products that could be used to exploit those products for espionage or cyberwarfare purposes. The purpose was to find ties between Huawei and the Chinese gov and also to give NSA the ability to roam through computers and telephone networks of all nations (allied or not) that use Huawei equipment giving the US the ability to conduct surveillance, and offensive cyber operations.https://www.nytimes.com/2014/03/23/world/asia/nsa-breached-chinese-servers-seen-as-spy-peril.htmlhttps://www.androidauthority.com/nsa-stole-huaweis-source-code-362824/ No evidence of backdoors or Huawei working with the Chinese government were found after a decade of spying and digging into Huawei’s system and devices by a huge NSA taskforce of expert hackers and engineers. The only justification the US gives other nations when forcing them to ban Huawei products is, despite no evidence of backdoors in Huawei products were ever found (besides the NSA installed one), it doesn't mean Huawei will not embed back doors in future products or software updates. That is a very weak argument because the Chinese can use the same argument and ban all US products especially given the huge irrefutable list of evidence of NSA spying. In addition to mass surveillance of domestic civilians, Edward Snowden described, "NSA engaged in "dangerous" and "criminal" activity by "hacking" civilian infrastructure networks in other countries such as "universities, hospitals, and private businesses" NSA themselves have claimed to have "direct access" through the "Prism" program to the systems of many major internet companies, including Microsoft, Skype, Apple, Google, Facebook and Yahoo despite some of these companies later deny NSA's claim (for obvious reasons).https://www.theguardian.com/world/2013/ju​l/11/microsoft-nsa-collaboration-user-data The US recently asked Germany to stop using Huawei products and Germany asked for proof of Huawei working with the Chinese government or Huawei spying. The US could not present any.https://fudzilla.com/news/47805-german-watchdog-says-there-is-no-proof-of-huawei-spying

93. Vogue1985

Posts: 383; Member since: Jan 24, 2017

I know , right,why are we being told what buy and what not to buy. Next it's will have hold send a pics to Google's Trump department Everytime you take a crap. No thank you.

109. inFla

Posts: 55; Member since: Aug 17, 2018

Spoken like a true patriot. lol

106. surethom

Posts: 1610; Member since: Mar 04, 2009

The worst thing to happen this decade you mean. I understand restricting 5G & other network infrastructure from using Huawei, but mobile restriction is a backward step.

39. mahalo15

Posts: 64; Member since: Nov 30, 2018

totally agree...about time Chinese stop rampant IP theft and come in line with the rest of the world

107. surethom

Posts: 1610; Member since: Mar 04, 2009

I they steal IP's then launch outside Chine they can get banned, you cannot tarnish every Chinese company with the same brush.

137. jacky899

Posts: 392; Member since: May 16, 2017

You are like Trump on the news repeatedly accusing Huawei of stealing its 5G tech from US companies, which is laughable because the whole world knows Huawei is the top contributor in the development of 5G tech. https://venturebeat.com/2019/05/02/china-dusts-the-u-s-finland-and-south-korea-with-34-of-key-5g-patents/ https://asia.nikkei.com/Spotlight/5G-networks/China-in-pole-position-for-5G-era-with-a-third-of-key-patents Huawei invested $14 billion in R&D last year and is only $1 billion behind the largest two (Google and Samsung). Huawei will increase R&D budget to $15-$20 bil this year, which is likely more than double its entire annual profits and become the largest global spender in R&D. Considering Huawei only makes a small fraction of the profits compared to Apple, Google and Samsung, this makes Huawei by far the company most willing to spend on R&D and innovation. Huawei filed a record 5,405 patents in 2018, the highest among corporate filers, according to the WIPO. Huawei is also crowned the patent king in Europe. Sadly, all of their diligent effort and generous R&D spending is downplayed by US propaganda as being stolen from companies who don't even have that technology.

74. Seanetta unregistered

What a stupid comment. So far there's been absolutely zero evidence about any of this. It's all about MONEY and the fact that Trump and his cronies don't like Chinese companies doing better than American. ZTE ended up settling a multi billion dollar agreement with them. Not one country has so far produced any evidence against Huawei or taken them to court. Americans are the bad guys not China, Huawei would be committing suicide if they were to be spying

105. TheOracle1

Posts: 2027; Member since: May 04, 2015

Huawei use the APK Pure app as the Huawei playstore and issue their own security patches. Problem solved.

2. Guseinguliev

Posts: 90; Member since: Mar 04, 2019

I think America is right this time.

31. d1g1te

Posts: 57; Member since: Oct 04, 2016

Right in what? This is really cowardly move. I do not want to choose my mobile brand based on what Trump wants. This clearly shows that Android needs to be globalised and should not be possible for one person to play dictator, who decides who can use it and who cannot. If US is not willing to drop Android from list of political/trading weapons we need new mobile OS that is not dependent on any specific country. This kind behaviour is disaster for mobile industry and can set all of us back years worth of progress.

40. mahalo15

Posts: 64; Member since: Nov 30, 2018

Rampant IP theft has to stop and line needs to be drawn somewhere...better late than never

44. stferrari

Posts: 45; Member since: Dec 15, 2014

Boy Predident Trump has you rattled good huh. You are entitled to your political opinion even if you have no idea what you are talking about. Huawei's problems where not caused by Trump but by their host country's bad actions relative to intellectual property theft (just for one example)

48. djcody

Posts: 219; Member since: Apr 17, 2013

nobody is stopping you from buying what ever phone you want. is just going to cost more or if you such smart ass you can develop your own os system. china started it we will finish it. they have 500 bln market to loose we just ship about 50 bln to them. every country will protect own market, there is nothing like equal access to it and i don't see anything wrong with it. govermment should work for people who pay taxes not worry about other country.

110. inFla

Posts: 55; Member since: Aug 17, 2018

Another true patriot. lol

94. kenemu

Posts: 26; Member since: Oct 22, 2011

it is too naive of you..there are laws in china stipulating that companies and individuals must assist CCP in information gathering whenever and whereever requied.

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