Huawei ban - Is it the end of an era or a new beginning?

The hugely successful Huawei Technologies received a setback in the recent times when the US Government banned Google and other companies from being involved with the brand. President Trump passed a national security order effectively banning Huawei’s mobiles on May 15th this year. The major reason for this is being cited as an aftermath of disparities in trade policies between China and America. The other cause is that America believes that their mobile devices can hack into sensitive data and other government policies that need to be safeguarded for the sake of national security.

Huawei is a China based telecommunications company and is known for it feature-rich mobile devices and network options. Since its inception three decades ago, it has seen a steep upward growth and is one of the largest manufacturers of mobile phones in the world. Its Android based devices are popular amongst people from around the world. However, with the recent announcement by the US government, its situation has become debilitating. Along with the people who own Huawei’s mobiles, there are several mobile service providers in the USA that are facing the repercussions of the ban. Here is a sequence of events of what has transpired since the ban and how they will shape the future of Huawei as a leading mobile devices and mobile app development company:

What do you need to know about the after effects of the ban?

  • Post May 15th, Google announced that it will block Huawei from all/any future Android updates. This means that it will be able to use only the open-source Android versions. Access to the Google Play Store, Maps and other pertinent features will be affected as a result. As soon as this news came out, Huawei revealed that it has been working on developing an alternative OS, tentatively called HongMeng. The representatives of the Company claimed that their mobile app development team is on the threshold of creating an Android replacement with a dedicated AppGallery to feature all its apps. However, the US Government has since said that it will allow companies offering mobile services in the USA to work with Huawei for the next 90 days to help customers continue using their mobiles without any hassles of network and other features. This temporary license gives them leverage until August 19th. Even Google has agreed to work with Huawei in the said period, subject to the relaxation in the trade restrictions imposed by the USA. There are implications that the period might further be extended by the American government.

  • As mentioned earlier, the US government has alleged that Huawei mobiles are a security threat to its internal policies. Following the footsteps of the USA, Canada also decided to ban the devices and their Android app development services. Being placed in the US Entity List is a huge backdraw as it questions the integrity of the Company as a whole. Huawei, however, disregards such claims and has announced that it has been and will be one of the foremost leaders in the mobile devices industry.

  • According to the latest Huawei mobile updates, it is believed that all the current Honor and Huawei devices will remain unaffected with regards to the after-sales services and security upgrades. The same cannot be held true for its upcoming models. After the Company’s announcement to launch 5G networks across the globe, there has been much speculation about its claim. Its inclusion in the Entity List prevents it from buying goods from US companies. It also implies that Huawei has to be upfront in all its technological updates and security features.

  • The US based Companies that are currently in a business relationship with Huawei will have to seek products/services elsewhere based on the ban. However, with the recent relaxation that has been offered by the US government until August 19th, the entity can trade with US companies in the 90 day license period, in order to offer network and other relevant services to clients who own Huawei devices bought before the ban was imposed.

HongMeng and what is offers

Owing to the current situation, there has been a considerable decrease in the number of Huawei devices being exported. Though there are no immediate issues being foreseen for people already using the said mobile phones, the future is based on how soon it can come up with a replacement plan.

HongMeng, the name given to Huawei’s alternative to Android, is being touted as the best answer to America’s ban. This OS promises to be much more efficient than Android in terms of performance. It has been reported that the Company has already shipped 1 million devices with HongMeng as the OS. Whether it is Android app development services or game development services, there are many companies from around the world that are waiting eagerly to experience this system and learn about its intricacies. The Huawei P40 is believed to be the first mobile device that is equipped with the OS that does not fall under the Android umbrella.

The fate of the upcoming Mate 30 and Mate 30 Pro is in jeopardy owing to the current situation. However, we have seen in the past that bigger companies like Huawei have come up with viable solutions to keep up their market share and avoid any major pecuniary affects in the short, as well as long run. Huawei is also trying hard to protect its brand reputation by announcing a refund to its customers if Google, Facebook and other important apps stop working on their devices. This announcement by the CEO and founder Ren Zhengfei is promising. It is a matter of time before a solution is proposed in this regard, owing to the widespread presence of this mobile conglomerate in the world market.

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