Huawei Now Able to Do Business With US Companies; Will it be the Same?

U.S President, Donald Trump announced on Saturday that US companies are permitted to sell goods & services to Huawei following a month-long ban.

At a press conference at G20 Summit in Osaka, Japan, Trump came up with this announcement. However, Huawei is still on the “Entity List”. Following the statements, White House economic advisor Lary Kudlow reaffirmed that Huawei remains on the U.S. Entity List.

He also said that the Commerce Department of the US has already provided a number of general service license for some sales to Huawei and will grant further licenses after Trump’s announcement.

What Does this Mean?

A. End of Huawei ban means that US companies can sell equipment and services to Huawei. Thus, there will be no problem with Google services, Android OS, or Windows OS on a Huawei device.

B. If you have been scared of buying any Huawei devices, now you should be able to purchase them without having second thoughts. Also, it’s a sigh of relief for millions of Huawei consumers out there. And, this also means that many of Huawei consumers should be receiving the Android Q update on their phone.

C. Finally, as a tech enthusiast, I’m happy that we will get to see new launches from Huawei. The new Mate series should be a banger, similarly, we will be able to see Huawei’s Mate X hitting the market very soon. But, I’m looking forward to the new MateBook from Huawei.

Will it be the Same?

No, it won’t. Huawei has taken severe brand damage due to the ban which will affect them in the long run. The company said that it’s 2019 revenue will be 30$ billion below estimates due to the disruption caused by Entity List.

Despite the good news, this whole issues exemplifies the dependency of Huawei on U.S companies. To address this, Huawei has already taken some steps, including the development of its own operating system to replace Android and it’s own chipsets.

As president Trump said US companies sell a tremendous amount of products to Huawei and they were not exactly happy with the ban. U.S. chipmakers like Intel and Xilinx reportedly lobbied the U.S. government to ease restrictions on Huawei. In 2018, Huawei spent around $11 billion on chips made by Intel, Qualcomm, and Micron alone (Android Authority).

For owners of Huawei devices, the news should come as a relief. Huawei took massive blows to its sales number in Nepal after the recent issue and Nepali consumers were gravely concerned by this issue. However, this news should calm the nerves of Huawei users and Huawei should be able to steadily regain its market in Nepal. Though, this could turn out to be a very tough job due to the brand damage that they have received over this period.