After more US sanctions have all-but-crippled the future of Huawei’s global networks business — and its efforts to become the dominant 5G provider — dollar signs are already materializing for its rivals.
At the crux of Huawei’s withdrawal is an annual $27 billion opportunity for its competitors — including Nokia, Ericsson and Samsung — to become the go-to providers of 5G and other telecommunication services to domestic carriers, says Ryan Koontz, an analyst at Rosenblatt Securities. “It’s a massive economic transition,” says Koontz. “It’s relatively urgent for these carriers to make the change.”
The multi-billion dollar market opportunity, which hinges on Huawei’s sales figures for the year ended September, will not evaporate overnight, Koontz says, but will likely be absorbed over the next three to four years.
The “Commentary: Politics Cloud Huawei’s Future” report has been added to ResearchAndMarkets.com’s offering.
Huawei held its global industry analyst summit (GAS 2020) in late May, just days after the U.S. Commerce Department expanded its Entity List restrictions on the company.
Much of the vendor’s network infrastructure product line relies upon chips manufactured by foundries like TSMC, based upon Huawei’s specifications but using U.S.-origin capital equipment for production and testing. Once the new rules take effect, if unchanged, the company could no longer rely upon these foundries for production.
Huawei is exploring various workarounds, including the possible use of Samsung, but a seamless solution is unlikely to be found quickly. Current inventory is rumored to last through March 2021.
Huawei continues to have an impressive technology portfolio, loads of talented engineers, and vast reach around the world, but it won’t get out of its current mess by just finding another source
China is planning to launch an antitrust investigation into Google, according to a report.
Huawei suggested the probe last year, two people with knowledge of the matter told Reuters.
The investigation would examine whether Google’s market dominance is causing “extreme damage” to Chinese companies, they said.
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China is reportedly preparing to launch an antitrust investigation into Google — at Huawei’s request.
The probe, which could be confirmed as soon as October, was suggested by the Chinese tech company in 2019, two people with knowledge of the matter told Reuters.
The probe would examine whether Google has hindered competition through the dominance of its Android mobile system, the people said. It has been submitted to Beijing for review by China’s top market regulator, the sources said.
After US President Donald Trump blacklisted Huawei in May 2019, Google stopped rolling out Android updates to Huawei