The biggest loser from the U.S. ban on exports to ZTE? Qualcomm

The biggest loser from the U.S. ban on exports to ZTE? Qualcomm
Believe it or not, ZTE is the largest underdog of a phone maker that sells in the US, taking fourth place after Apple, Samsung and LG. That's mainly due to the excellent value for money propositions it sells unlocked, as well as outsize appearance in the prepaid budget phone market, but a fourth place is a fourth place nonetheless. 

These happy times might be coming to an end for ZTE, as, after playing defense on Huawei phones like the Mate 10 series, the US banned local company exports to ZTE as well. The crux of the matter appears to be breaking one of the numerous embargoes against Iran that the US has in place. ZTE got punished by our government with fines, and has apparently promised to deal with the managers that were culpable. Instead, ZTE kept them, and has reportedly even given them bonuses, which didn't fly with our hawk-eye national security agencies.

The issue is, however, that ZTE sells 65 million phones worldwide annually, and, according to different estimates, 50-65% of those come equipped with Qualcomm chipsets. The processor-maker stands to lose up to $25 per unit on average from the ban on ZTE exports, mounting up to almost half a billion of potential revenue losses. The extra drama doesn't come at a good time for Qualcomm, which is feeling the heat from Apple, Samsung, Huawei, and other mobile chip makers. On the other hand "most carriers want Qualcomm chip sets in the United States, so basically they are in deep trouble. They’d be losing one of their biggest markets," said one analyst about the ZTE-Qualcomm affair. Talk about a lose-lose situation here.

source: Reuters

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14 Comments

1. Crispin_Gatieza

Posts: 3125; Member since: Jan 23, 2014

That's our boy Trump. About as useless as tits on a bull.

2. RevolutionA

Posts: 392; Member since: Sep 30, 2017

No one's gonna lose anything. It's a win win for all of us here. Wait and see the magic

3. Crispin_Gatieza

Posts: 3125; Member since: Jan 23, 2014

You must be a coal miner. Good luck with that one.

4. bucknassty

Posts: 1325; Member since: Mar 24, 2017

dont you know... he only wants america to spy on america and the rest of the world

5. Doakie

Posts: 2478; Member since: May 06, 2009

Am I mistaken? Didn't this whole thing start under Obamas administration? Trump's administration is just taking the matter to the next step, right? I'm sick of this political amnesia bs, it seems like everyone forgets what the previous admin already put into motion and blames who ever is closest.

6. DFranch

Posts: 533; Member since: Apr 20, 2012

Lets Make America Broke ... I mean Great Again

7. fyah_king unregistered

Great, now I can’t get my free blade z max 2 in the future.

11. JimmieCrakCorn

Posts: 143; Member since: Nov 20, 2017

All Chinese phones should be banned from being sold in US. The US government has started to wise up to these sleazy IP stealing Chinese vendors aka spies. We need to punish them with steep fines of hundreds of million dollars and jail !! Stop contributing to their profits which they use to build missiles and warships to deploy against America!

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