The Entity List released by the President Trump administration has had a negative impact on Huawei. The list which was released in May 2019, banned Huawei from importing hardware and software from the US. Due to this list, Google cut-off ties with the Chinese tech company. This ban and other controversies have led to the sinking of Huawei’s international phone sales by 40%.
According to Ren Zhengfei, the founder of Huawei, smartphone sales sunk 40% in May due to the Entity List released by the US government. He revealed that Huawei will be slashing production by $30 billion. Huawei had predicted earlier in the year that sales will hit $125 billion, they have nonetheless said that sales are now expected to remain flat at $100 billion in 2019 and 2020, and by 2021 the company will regain its vitality.
Aside from Google banning Huawei from future access to their Android OS, Facebook has also barred the Chinese tech giant from pre-installing Facebook, Instagram, Facebook Messenger and WhatsApp. According to BBC, UK-based Chip designer ARM has also suspended business with Huawei.
These controversies have affected Huawei’s Matebook Laptop product launch which has been postponed indefinitely. This is because the company could not access Microsoft’s Windows operating system and other necessary software required for the product to properly function.
Source: techgistafrica
