Huawei has had to replace 13,000 parts in three years because the United States imposed trade restrictions. The restrictions still apply and, among other things, ensure that Huawei is not allowed to use Google services. But, also no hardware that comes from American companies and that has made a major impact on the Chinese tech company.
Trade ban for Huawei
Reuters indicates that the founder and CEO of Huawei, Ren Zhengfei, opened a booklet during a speech in February with what that trade ban means for Huawei. We have of course already seen its influence on the Chinese company in part: it has been completely wiped out of the lists of best-selling phones in terms of smartphone sales. Their phones are also generally a lot less interesting to us in the West because Google services are not allowed to be used on them, which also affects apps that use Google to display locations on Maps, such as Uber.
Huawei has worked hard in recent years to offer an alternative in the form of the Huawei App Gallery, but in the West we turn out to be very fond of our Gmail app and all those other apps that still struggle with that. unable to use Google services. Huawei saw its huge successes in the smartphone world disappear very quickly in our region. However, that is not all. Huawei itself says it had to replace 13,000 parts, plus make new designs for about 4,000 circuit boards.
Zhengfei, however, takes a combative stance. He indicates that if there is greater profitability, more money will go to innovation and research. In one year, according to the CEO, Huawei has already invested $ 23.8 billion in innovation and research (also known as research & development). The reason it had so much money to spend is partly due to the network technology that Huawei offers, the successes it does have in Asia and the sale of peripheral products such as earplugs, wearables and more.
Replacing 13,000 parts doesn’t seem very sustainable, but it doesn’t look like the United States is going to withdraw its ban. It doesn’t just trust Chinese technology, especially when it comes from Huawei. According to the US, there would be espionage by the company and it would have rather intimate ties with the Chinese government. Huawei has been denying this for years, but that should not benefit the trade ban in the United States for the time being.
In which segment do you think Huawei can develop best? Leave it now in the comments to this article.