This week has not been any easy for Huawei Technologies, following the Denial Order issued by the US Department of Commerce prohibiting domestic companies from conducting business with the entity without being licensed – particularly stopping the smartphone maker from buying parts and components from the companies.
The order has seen Google cut off Huawei’s access to the Google Play Store and to the core components of the Android ecosystem as well as other companies making formal (and informal) announcements about their plans to stop working with the Chinese company.
The blacklist leaves Huawei in a dark economic future, especially with the Google Play Store, Play Services, and collaboration within the Android operating system likely to be no longer be available to Huawei once the ban takes effect in the next three months.
However, Huawei Founder and CEO – Mr Ren Zhengfei has expressed confidence in the company’s business and capacity, stating that the company is ready for anything that comes up because it has been anticipating of such situations.
“We will certainly be able to continue serving our customers. Our production capacity is huge, and adding Huawei to the Entity List won’t have a huge impact on us. We are making progress in bidding worldwide.”
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Slow growth, bright future
Currently Huawei ranks 5th as per the the 2018 EU R&D Investment Scoreboard, with steady growth in its R&D investment. Ren does admit that Huawei’s growth is most likely going to slow down, but expresses confidence in the company’s future prospects.
“In the first quarter of this year, our revenue grew 39% over the same period last year. This rate decreased to 25% in April, and may continue decreasing towards the end of this year. But the US ban will not lead to negative growth or harm the development of our industry.”
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Huawei Vice President of Corporate Communications, Glenn Schloss believes too that Huawei consumers will not be taken away by the US ban. In an interview with CNBC Africa on Wednesday, he reiterated the fact that current Huawei smartphone owners are unaffected by the ongoing battle.
“We remain positive, but we are preparing for various eventualities. We are stockpiling components and have been working with our supply-chain partners for some time.”
No ban in other countries
The leaders of Britain, Germany, France, Belgium and the Netherlands said that their governments will not follow suit to ban Huawei from involvement in their networks.
