The US government is hammering the final nail in Huawei's coffin

In May 2019, the United States placed Huawei on the list of companies banned from doing business with any American company; In 2018, the Chinese company spent more than $8 billion importing components from the United States for use in its products.

Huawei's biggest loss has been its inability to obtain a license from Google for its open source Android operating system and to use Google Mobile Services on its phones.

It is worth noting that Huawei phones inside China do not have any Google applications in the first place, although Huawei managed to increase its smartphone shipments by 35.5% last year to 142 million units, surpassing Apple, which ranked second after Samsung.

Will the United States succeed in completely paralyzing Huawei?

After Huawei became the world's largest smartphone maker earlier this year due to its revenue in the Asian market, the United States once again tried to stymie the company's progress, this time dealing what appears to be a fatal blow. Exactly one year after it was included in the list of banned companies, the US Department of Commerce announced a change in the external export regime that unfortunately killed Huawei.

Starting in the middle of last month, some factories that use American technology to manufacture processors had to obtain a US license before they could begin to finish and ship those processors to Huawei.

And this time, Huawei's supply chain has been hit hard. For example, Huawei ordered 15 million Kirin 9000 processors; These processors are produced by TSMC using advanced 5nm manufacturing precision making them more powerful and energy efficient than all previous Kirin processors.

Because of that action by the United States, Huawei was able to receive only 8.8 million processors, almost half the number that was required. Given that these chipsets are used in series Mate 40 As it has just been announced as the 5G infrastructure, the manufacturer is expected to run out of stock sometime in the not-too-distant future.

Will Huawei acquiesce in these measures?

There is speculation that Huawei may have to leave the smartphone business entirely and it is said that it is looking to break into the auto industry. For smartphone enthusiasts, what is happening to the manufacturer can be considered a disgrace and conspiracy on all sides.

In 2016, the company's head of consumer products, Richard Yu, set a goal that seemed very ambitious at the time. He said that Huawei will overtake Apple in the production of smartphones over two to three years to become the second largest manufacturer of smartphones in the world.

And after that time period of three years as well, Richard predicted that the company would displace Samsung away to be the king of the phone industry in the world. Last year, the first goal was achieved, and as we mentioned earlier, the second goal was reached earlier this year, even if for a short period of time. Keep in mind that Huawei phones are also not sold in the US which is the third largest smartphone market in the world.

It can be seen that the US has got its way, which is evident in the company's latest earnings report. This morning, the company reported a 9.9% revenue increase, or $98.57 billion, in the first three quarters of the year, which is in line with expectations.

But that growth rate pales in comparison to the 24.4% increase that Huawei achieved during the first nine months of 2019. Even Huawei's press release shows how it is experiencing issues with its supply chain.

Huawei's global supply chain is under severe pressure and its production and operations are facing major challenges. The company continues to make every effort to find solutions, survive and move forward in the smartphone market, and fulfill its commitments to customers and suppliers.

Huawei press release

There are several reasons why the United States chose Huawei as its number one cyber enemy. The Trump administration considers the company a national security threat due to its close ties to the Communist Chinese government.

Mohamed Hamed

Mohamed Hamed

A BA in English literature and a diploma in translation from AUC University, age 25 - I love the technical field, you will find me either reading an article or books about a new technology, I write on many technical websites.

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