Huawei cut off from Google's Android - Business Leader News

Huawei cut off from Google’s Android


Google has banned Chinese smartphone giant Huawei from some updates to the Android operating system. The ban could mean that in the future, current Huawei smartphone owners will not have access to the next version of Android or apps such as YouTube and Maps.

Huawei can still use the form of Android available through an open source license.

The move follows Donald Trump’s executive order last week which added Huawei and ZTE to the ‘Entity List’. The order prevents the companies from buying components or technology from US suppliers without government approval and is based on suspicions of the Chinese companies aiding in espionage. Huawei is facing almost two dozen criminal charges filed by US authorities.

Earlier in May, Donald Trump also hiked tariffs on more than $200bn (£156.92bn) of Chinese imports.

Google stated that it was complying with the president’s order and investigating the implications.

Chipmakers including Intel Corp., Qualcomm Inc., Xilinx Inc. and Broadcom Inc. have also cut off their exports to Huawei.

The ban on US supplies was anticipated, and Huawei has reportedly been stockpiling essential parts since last summer. It has also focused R&D efforts on creating original replacements for US parts and software. Huawei invests an estimated $15bn (£11.77bn) in R&D annually.

However, even anticipated, this ban could seriously hinder Huawei’s plans to overtake Samsung as the world’s biggest smartphone supplier by 2020.

Prior to the ban, Huawei bought more than $11bn (£8.63bn) in US imports each year. The forcible severing of trade relationships will not only harm Huawei but will likely hit US suppliers who are effectively cut off from the world’s second-biggest market.

Germany’s Infineon Technologies AG fell in early trading Monday after halting shipments to Huawei. Shares of STMicroelectronics NV and Austrian-based AMS AG have also dipped.

Related News: