Huawei’s future was bright. Things were really looking good for the Chinese tech giant. Huawei profits had skyrocket while Apple and other companies were experiencing a decline. Despite the trade wars between the US government and China, Huawei’s fortunes were growing tremendously. In addition, the UK and European Union officials had declared that they will not follow the US directive to ban Huawei from installing 5G network infrastructure in their countries.
However, things went south on Thursday. The United States Department of Commerce suddenly decided to add Huawei to the list of companies that are considered to be a threat to the security of the United States.
This was a big blow to the Chinese Tech giant. This is because Huawei now has to seek permission to use US technology. Makers of chipsets such Intel had already stopped selling their technology to Huawei. The company will also not be able to use Google’s mobile applications such as Play Store and Gmail. This may be a big setback since Huawei smartphones run on Android.
Many Chinese companies rely on technology developed in the US. Last year, ZTE had a near-death experience after the US government asked US companies not to sell to the company. Fortunately for ZTE, the Trump administration backed down after a while.
Huawei is not as vulnerable, but the ban will obviously have a big negative effect. We are waiting to see how it will survive the storm.
Huawei Kenya recently posted a message on its official social media pages asking customers with Huawei and Honor phones not to panic.
All we can do now is wait and see how future Huawei and Honor devices will be received. Huawei had already announced that it was going to launch the Y5 2019 in Kenya in June.