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A technology consultant with extensive experience in China has suggested that the commercial ban imposed by the Trump administration on Huawei could hurt Google and Apple.
To date, Goldman Sachs has drawn attention to the risk weighing on Apple's business: the worst case scenario for the iPhone maker could be a 29% drop in the company's overall profits …
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But Internal business reports GBA Managing Partner Gregor Berkowitz, pointing out the potential risk for Google.
The US government's decision to prevent the Chinese appliance manufacturer from using US technology products and services could encourage it to promote Chinese applications and services outside China, said Berkowitz.
This could give companies such as Baidu an edge over Google and Didi over Uber in areas of the world where Huawei is strong, he said.
The problem is not in China itself, but in other countries where Huawei smartphones are selling well.
"People like Google are starting to lose because Huawei will lead his search [box] at Baidu, not at Google, "said Berkowitz.He continued:" As a conflict or trade war between the United States and China [heats up] … we will see this set of Chinese suppliers start to spread around the world [with Baidu becoming] the default search engine for India and consumers in Africa and the e-mail provider and online transaction provider. "
The loss of access to future versions of Android would effectively destroy the company's operations in the US and other developed markets, but this is not necessarily the case in emerging markets. There, the ability to buy high end hardware with the latest technology at an affordable price may be more important than the operating system.
Apple is widely considered the most at risk, as a leading company selling expensive hardware in China. An easy way for China to react against the United States would be to ban iPhone sales in the country, which would affect Apple extremely. But Mr Berkowitz said we also needed to consider the long-term consequences of Huawei's trade ban for other US companies.
"There are many side effects" of the attack on Huawei "that are perhaps more important than the primary effect," Berkowitz said.
Yesterday Google has removed the Huawei Mate X and P30 Pro from Android.com.
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