The feeling when you wake up just to discover that your favourite phone maker has been banned by the owner of its operating software. Phew! But what can you do? World politics, right? The consequences of the Google Huawei ban may or may not be as bad we see it.
Google cutting ties with Huawei came as a shock though Huawei has been having a back and forth issues with the US government. After President Trump of the United States signed an executive order a few days ago, top tech companies in the US have started putting their business dealings with Huawei on hold.
After Google banned Huawei, Qualcomm, Broadcom, and Intel have reportedly followed suit. All these American companies are just following the “Executive Order on Securing the Information and Communications Technology and Services Supply Chain”.
The order prohibits US companies from using equipment “designed, developed, manufactured, or supplied, by persons owned by, controlled by, or subject to the jurisdiction or direction of a foreign adversary.”
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This order made the Commerce Department add Huawei to the list of foreign firms that can’t deal directly with American companies. And by adding Huawei to that list, US companies had to cease doing business with Huawei.
As the news came as a shock with obvious bad sides, there could be good sides to it as well, maybe not entirely for the company. Let’s see some of the bad and good consequences of Google/Qualcomm/Intel banning Huawei.
Consequences of the Google Huawei ban
Not so good effects of the ban
Not readily available Google updates
The bans take away some privileges like Google updates for future devices. Huawei won’t readily get updates unlike it did, where Google itself sends updates to all mobiles running Android. With the ban in place, if Huawei still wants to use Android for its future phones, it will have to manually get updates and patches from the Android Open Source Project.
No more parts/components from the US
Though Huawei makes some of its things to manufacture its phones, it’s still dependent on other companies for components. According to the Nikkei Asia Review, Huawei bought about US$70 billion worth of components and services from its 13,000 suppliers worldwide last year. Out of that amount, roughly US$11 billion went to suppliers in the US.
With the ban, those US suppliers won’t gained any more revenue from Huawei. Huawei now also have to look for new suppliers to feed it with those components it bought from the US suppliers.
Somehow, there seem to be some sides to the issue. It’s not entirely bad for the tech industry. Closed doors somewhere could mean open gates to someone elsewhere. Let’s see a few of them.
Since the suppliers in the US would definitely close their doors to the Chinese giant, it opens doors for other companies (in countries other than the US) that supply the same components. Such companies can now replace Huawei’s US suppliers and inherit the deals they had.
For instance, if Huawei was buying screen components from some US firm, the door is now open for some company in, let’s say, Africa, to supply Huawei with the same component.
Jobs for programmers
As the CEO of Huawei, Richard Yu, said, the company is making its own OS. This OS, perhaps, is going to replace the Android OS. And if it does, Huawei might not make it open source like Android. The company may want to go the iOS way. Going that way will require additional programmers to maintain and upgrade and the software.
New ways to make money as programmers
Also, the new OS will bring a new app market. A new app market will also call for apps. This will bring another platform for mobile app coders to make money aside iOS’ App Store and Android’s Play store. And considering Huawei’s strength on the mobile market, its app store won’t fail like that of Microsoft.
These are mostly prospective consequences of the whole Huawei being banned by Google saga. But, they are most likely to happen if Huawei tries to fight back rather than begging to stay on Android.