Overview of the Situation
Huawei, a Chinese tech giant, has been in the business of manufacturing smartphones and other telecommunication devices for over a decade now. However, its future in the smartphone industry has been uncertain for the past two years ever since the United States imposed an embargo on the company. This embargo led to a significant decline in Huawei’s global smartphone market share. This article will discuss the impact of the ban on Huawei’s smartphone business and its prospects for the future.
Impact of the Embargo on Huawei’s Smartphone Business
The embargo imposed by the United States government prevented Huawei from using Google Mobile Services (GMS) on its devices. As a result, the company had to develop its own operating system (Harmony OS) and mobile services. However, without GMS, Huawei smartphones lost access to popular apps, such as Google Maps, Gmail, and YouTube, making them less attractive to consumers. This led to a significant drop in Huawei’s global smartphone market share.
Additionally, due to the embargo, Huawei could no longer source critical hardware components from US companies, including chipsets from Qualcomm and Intel. Huawei still managed to source some components from other companies globally. However, the quality of these components was reportedly not at par with the ones sourced from American companies, leading to an overall decrease in the quality of Huawei smartphones.
The Prospects for Huawei’s Smartphone Business
Despite the challenges caused by the embargo, Huawei remains committed to the smartphone business. The company plans to strengthen its position in the Chinese market while expanding to other countries that are not affected by the embargo.
Huawei’s bet on the Chinese market seems to be paying off. In 2020, the company overtook Samsung as the world’s top smartphone seller for the first time, with over 240 million units sold. This achievement was largely due to Huawei’s strong brand recognition and the fact that its smartphones were required to use Huawei’s app store to access apps. This effectively made Huawei’s app store a third alternative to Google’s Play Store and Apple’s App Store.
Huawei also plans to invest heavily in research and development to boost its smartphone business. This includes developing its own operating system (Harmony OS), which it plans to use not only on smartphones but on other devices such as smart TVs, tablets, and wearables. It also plans to launch a new line of Android smartphones compatible with Google Mobile Services, should the embargo be lifted.
Conclusion
The US embargo has undoubtedly affected Huawei’s global smartphone market share, but the company remains committed to the smartphone business. Huawei is focusing on strengthening its brand in the Chinese market while expanding into other countries not affected by the embargo. The company is also investing heavily in research and development to improve its products and launch new ones in the future. Users can expect Huawei to continue releasing innovative smartphones at competitive prices, and the company’s prospects look bright if it can keep up its momentum in the Chinese market and other countries not affected by the embargo. For a more complete understanding of the subject, visit this external website we’ve selected for you. Discover this in-depth study, uncover fresh viewpoints and supplementary data related to the subject.
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