“We have prepared our own operating systems – that’s our plan B.” Glory Cheung, Huawei’s Chief Brand Officer, told German newspaper, Die Welt, earlier this year.
The Chinese tech giant has been temporarily banned from the use of Google Android and Google Play services, as announced by Google. This ban is consequent upon Huawei being added to the Trump Administration’s entity list, a list of non-US companies that are not allowed to deal with any US-based company without government approval. “We are complying with the order and reviewing the implications,” Google mentioned in a mailed statement to CNET on Sunday night.
How This Affect Huawei and its Users
Google spokesperson reported that current Huawei smartphone users that are already using the Google apps will be able to continue their usage of the apps and can download updates provided by Google. “For users of our services, Google Play and the security protections from Google Play Protect will continue to function on existing Huawei devices,” the spokesperson commented further. However, future products from Huawei may not be allowed to use the Google Android Operating System and the services that come with it. This is a significant challenge to the Chinese tech giant as they are ushered into their high-flying 5G era with such hostility from Western countries led by the United States. Nevertheless, the UK has held back from any formal ban on the tech giant. According to BBC editor, Leo Kellion “Smartphone shoppers would not want an Android phone that lacked access to Google’s Play Store, its virtual assistant or security updates, assuming these are among the services that would be pulled.” This is very damaging for Huawei businesses worldwide.
What is Huawei Doing about This?
Although this incident has come as a big blow to the tech giant, it was not much of a shocker to the company’s executives.
CCS Insight Consultancy’s Ben Wood said that
“Huawei has been working hard on developing its own App Gallery and other software assets in a similar manner to its work on chipset solutions.”
Also, Huawei’s Chief Brand Officer has openly told Die Welt earlier this year that “We have prepared our own operating systems – that’s our plan B.”
After being placed on the list, Huawei CEO Ren Zhengfei addressed the Japanese media on Saturday, saying, “We have already been preparing for this.”
How they have been doing so is not a question to reckon. The CEO went on to disclose to the media that the company has been investing $67 billion on components, each year but would move ahead to develop its components. This is an explicit confirmation of Cheung’s statement to the German media earlier this year.
Analysts Opinion of the Challenge
Many analysts are awakened with the question, whether the tech giant would be able to excel in business without the support of the United States. Although, the extent of the effect of the US government’s blacklisting of the company is not known globally. The question on every investor’s mind is, “would Huawei survive this blow?” Hopefully, they will. They have shown their commitment to solving the problem.