S & P says US tech companies could face collateral damage when Huawei is banned



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CNET reports that the boomerang effect of Huawei's placement on the Department of Commerce's list of entities will be bad for US tech companies. This is according to the credit rating agency S & P. ​​Huawei's ranking on the list last month prevents the manufacturer from obtaining US components and software without a license granted by the US government. While Huawei still operates on a 90-day delay, its new handsets will have to use an internally developed Android alternative. Although she may have a year of chip samples, once the parts are removed, she may have to rely on an open source chip architecture to replace that of ARM Holding that she previously used on her chips Kirin and Balong.
There is no doubt that this ban will seriously jeopardize Huawei's ability to remain a leader in the smartphone industry. The company was the second largest handset maker connected in the first quarter of this year, with a growth rate from one year to the other of 50.3%, compared with a 4% decline for the year. Entire sector. At this rate, Huawei would have been the largest smartphone maker in the world next year. According to the worst scenario calculated by Strategy Analytics, Huawei could see its phone shipments rise from 206 million last year to 125 million in 2020.

However, S & P believes that the ban could have a negative impact on the growth of the technology sector in the United States. Huawei has spent US $ 11 billion on US supplies in 2018, which alone is revenue that will be lost for US companies. Companies such as Google, Qualcomm, Micron and others will lose revenue from Huawei. And even if Huawei would be removed from the list of entities in the future, it would have developed new vendors, its own operating system and its App Store, and redefined its chips. As a result, depending on when (or if) the end of the ban, Huawei could be self-sufficient and no longer need components and software from US technology companies to survive.

Huawei asks more than a billion dollars to Verizon

While President Donald Trump said last month that US security was the reason why Huawei had been placed on the list of entities, he also said the company could be used as a currency for trading. to get better terms from China during negotiations of a trade agreement. For years, Huawei has been considered a threat to US national security as it can be forced to spy on consumers and businesses on the orders of the Chinese Communist government. Rumors that Huawei devices contain a backdoor ready to send intelligence to Beijing have never been proven and have always been denied by the company. The United States has told its allies not to allow their wireless service providers to use Huawei network equipment for their 5G networks.
Huawei claims Verizon owes it more than $ 1 billion in license fees

Huawei claims Verizon owes it more than $ 1 billion in license fees

In the same vein, Reuters reports that Huawei is seeking more than $ 1 billion from Verizon. The company claims that the country's largest wireless service provider has used more than 230 unlicensed network equipment patents. The patents cover the main network equipment, the wired infrastructure and the technology of the Internet of Things. Representatives of the two companies met in New York last week to discuss patents. They also discussed whether network equipment manufactured by other companies and used by Verizon violated Huawei's patents. Rich Young, spokesman for Verizon, said: "These issues are more important than Verizon.Since the broader geopolitical context, any problem involving Huawei has implications for our entire industry and also raises concerns national and international

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