The Chinese telecommunications giant, anticipates a slow sales performance in 2020 due to the US boycott of their products. Earlier this year, Trump banned the sharing of US technology with foreign adversaries, in the name of national security. Huawei, executive Vice President Jeremy Thompson however, believes the ban has less to do with security and more to do with the trade war between China and the United States. Regardless of the reason, Huawei is still receiving the short end of the stick.
The ban prevents American firms such as Google from partnering with Huawei. Although Huawei is a force with regard to its 5g technology and price point, the US and other foreign nations are suspicious of the firms close ties to the Chinese government.
US intelligence chiefs, believe the equipment could be compromised and thus poses a threat to the United States. The U.S ban on Huawei puts a major strain on the company because they no longer have access to Google’s Android operating system on which Huawei’s mobile devices depend.
Other countries have also banned or limited Huwaei access. European telecommunication firms Telenor and Telia, have decided against Huwaei as a supplier for their 5g networks. Countries such as Australia, Japan and the UK are quickly following suit.
Huawei’s tense relationship with the West didn’t adversely affect the firm’s 2019 sales. In fact sales, increased by 18 percent. However, as distrust grows in the West, the firms 2020 predictions might soon turn into reality.
Whats are your thoughts? Do you foresee a massive dip in sales? Will Huawei survive the new decade?
