Page 24 - ARUBA TODAY

A24 technology
Tuesday 21 May 2019
Huawei apt to be stripped of Google services after U.S. ban

Huawei and its smaller rival,
ZTE Corp., pose an espio-
nage threat because they
are beholden to China's
ruling Communist Party.
But American officials have
presented no evidence
of any Huawei equipment
serving as intentional con-
duits for espionage by Bei-
jing.
Huawei, headquartered in
the southern city of Shen-
zhen near Hong Kong,
reported earlier that its
worldwide sales rose 19.5%
last year over 2017 to 721.2
billion ($105.2 billion). Profit
rose 25.1% to 59.3 billion
yuan ($8.6 billion).
Huawei smartphone ship-
ments rose 50% in the first
three months of 2019 to
59.1 million, compared
with a year earlier, while
the global industry's total
fell 6.6%, according to IDC.
Shipments from Samsung
and Apple both declined.
Huawei defended itself
A Huawei Mate20P smartphone model showing its own Kirin chip processor is displayed at an electronic store in Beijing, Monday,
May 20, 2019. Monday as "one of An-
Associated Press droid's key global partners."
The company said it helped
Associated Press Washington claims Huawei Analytics, said Google it- nology sales to the com- to develop a system that
Huawei could quickly lose poses a national security self won't feel a large di- pany to obtain U.S. gov- "benefited both users and
its grip on the No. 2 rank- threat, and its placement rect impact, "as consumers ernment approval unless the industry."
ing in worldwide cellphone on the so-called Entity List will shift to other Android exceptions are made. "We will continue to build a
sales after Google an- by the Trump administra- devices. The biggest con- The global risk assessment safe and sustainable soft-
nounced it would comply tion last week is widely seen cern is not to be caught in outfit Eurasia Group said ware ecosystem, in order
with U.S. government re- as intended to persuade the crossfire of two govern- the Commerce Depart- to provide the best experi-
strictions meant to punish resistant U.S. allies in Europe ments." ment was expected to set ence for all users globally,"
the Chinese tech power- to exclude Huawei equip- Gartner analyst Tuong a 90-day grace period this the company said.
house. ment from their next-gen- Nguyen said 48% of Hua- week. Department officials A foreign ministry spokes-
The Trump administration's eration wireless networks, wei's phone shipments last did not immediately return man, Lu Kang, said China
move, which effectively known as 5G. year were outside of Chi- phone calls and emails will "monitor the develop-
bars U.S. firms from selling "This is major crisis for Hua- na and the company will seeking comment. ment of the situation" but
components and software wei. Instead of being the need to scramble not to In a report, Eurasia Group gave no indication how
to Huawei, ups the ante world's largest handset lose market share. said that if the Commerce Beijing might respond.
in a trade war between manufacturer this year, it Samsung led global smart- Department sanction pro- The U.S. order took effect
Washington and Beijing will struggle to stay two, but phone sales in the first quar- cess helps persuade Euro- Thursday and requires gov-
that partly reflects a strug- probably fall behind," ana- ter of this year with a 23.1% pean carriers to shun Hua- ernment approval for all
gle for global economic lyst Roger Entner said. "How share. Huawei was second wei equipment, a full ban purchases of American
and technological domi- competitive is a smart- with 19%, followed by Ap- on purchases of U.S. tech- microchips, software and
nance. phone without the most ple at 11.7%, according to nology products and ser- other components globally
Google said it would con- well-known and popular IDC. vices could be avoided. by Huawei and 68 affiliated
tinue to support existing apps?" Huawei's smartphone sales Google, a unit of Alphabet businesses. Huawei says
Huawei smartphones but Huawei will likely use its in the U.S. are tiny — and Inc., said in a statement late that amounted to $11 bil-
future devices will not have own, stripped-down ver- the Chinese company's Sunday that it was comply- lion in goods last year.
its flagship apps and servic- sion of Android, whose ba- footprint in telecommuni- ing with and "reviewing the That could certainly create
es, including maps, Gmail sic code is provided free cations networks is limited implications" of the require- some collateral damage
and search. Only basic ser- of charge by Google. But to smaller wireless and in- ment for export licenses for U.S. companies. The
vices would be available the Mountain View, Califor- ternet providers— so any for technology sales to California chipmaker Xilinx
for future versions of the nia, company said Huawei impact on U.S. consumers Huawei, which took effect Inc. tumbled 4% Monday.
Android operating system would not be authorized to of a Google services cutoff Thursday. "For users of our David Wong, an analyst
on Huawei's smartphones. use other Google software would be slight. services, Google Play and with Nomura, said Xilinx has
Though the U.S. Commerce and services if the sanctions Hardware suppliers led by the security protections benefited from demand
Department grants excep- go forward as announced. Qualcomm, Broadcom from Google Play Protect in next-generation, 5G
tions, the ban announced Google could seek ex- and Intel would also be will continue to function on technologies and "action
last week on all purchases emptions, but would not forced to halt shipments existing Huawei devices," it against a major maker of
of U.S. technology is thus comment on whether it to Huawei under the Com- added. communications infrastruc-
apt to badly hurt Huawei, planned to do so. merce Department rule, The U.S. government says ture equipment like Huawei
analysts say. Entner, founder of Recon which requires all U.S. tech- Chinese suppliers including likely poses risk for Xilinx."q