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U.S trade ban hurts Huawei's ability to compete overseas

By Cookie Monster - on 1 Apr 2020, 12:00am

U.S trade ban hurts Huawei's ability to compete overseas

Huawei reported a revenue growth of 19.1% in 2019, but says it could be higher if not for the U.S trade ban. 

Vincent Pang, president of Huawei's western Europe business, shared that 2019 was "a big challenge" for the company during a call with reporters on the 2019 financial results. As the consumer business has been the major revenue driver for the company, the U.S trade ban has hurt Huawei's ability to compete outside of China.

Pang said it was "quite a big difficulty" in growing smartphone sales as its recent flagship phones could not ship with Google's apps. The company is also unable to purchase new laptop chipsets from Intel. In addition, growth in its enterprise businesses are also hurt by the ban as servers and big data analysis are powered by Intel chips.

Huawei began making its own components and switched to Asian suppliers to minimise the impact of the U.S trade ban. It reportedly shifted orders of cellular power amplifiers and Wi-Fi chips from Skyworks, Qorvo, and Broadcom to Japan’s Murata Manufacturing and Taiwan’s RichWave.

Even though the trade ban has not gone into full effect, Pang believes it will continue to be an obstacle in the near future. He also said that the U.S government "is not willing to talk" with Huawei about removing the trade ban, but he hopes "at some point" both parties can participate in these conversations. 

Source: The Verge