Things are not going well at all for Huawei at the moment. Smartphones, which were supposed to appear this year, will probably have to be postponed, and now the Chinese manufacturer will also be turned off the money tap at a crucial point.
Huawei no longer gets money from the U.S.
In the U.S., Huawei has never played a significant role in the smartphone market. Still, the Chinese company has been one of the largest and most attractive suppliers of mobile hardware, especially for small vendors. In many networks in the USA, components were installed. For the mobile operators, there are subsidies from the state. When Huawei was classified as a security risk, these subsidies were discontinued for customers. Accordingly, the procurement of Huawei hardware was unattractive for the suppliers in the USA. Huawei’s lawsuit against this decision has now been dismissed. Another important source of income is thus eliminated.
In justifying this decision, the court based its “overwhelming evidence.” Accordingly, Huawei is submissive to the Chinese government and would engage in espionage. In particular, relations with the People’s Liberation Army of the People’s Republic of China are a significant security risk for the USA. The decision to exclude Huawei was made unanimously across party lines at the time and is now final, the judges said. A renewed appeal to Huawei is no longer possible.
In this video, you will learn with which products Huawei wants to master the crisis:
For Huawei, the air is getting thinner and thinner
This is just another setback for Huawei, driving the Chinese company entirely out of the U.S. The hope that the U.S. ban on Huawei will be lifted in the foreseeable future is definitely off the table. The U.S. will also continue to put pressure on other countries not to use Huawei hardware. The consequences are already clearly visible today. Many mobile operators have kicked Huawei out. But it is not only in this sector that Huawei is battered. The company is also struggling to build smartphones. The Huawei P50 Pro is coming “at some point,” and the Mate 50 Pro is probably wholly put on hold.