Trump's decision to ban Huawei products, the second largest smartphone manufacturer in the world, and prevent cooperation with it in any way in the United States, was not good news for the Chinese in the first place, but its influence extended to major companies headed by Apple, Google, Qualcomm, Intel and others. What is the impact of this ban on those companies?


After Google announced the suspension of cooperation with Huawei, and other companies followed suit, Huawei received another double and painful blow, as two companies announced the severance of relations with it, namely the Wi-Fi Alliance and microSD, after receiving an order from the Trump administration to stop working with Huawei.

According to some reports, the Wi-Fi Alliance has temporarily restricted the alliance with Huawei. While the SD company announced that it permanently cut ties with Huawei as of now. This is undoubtedly a big loss for Huawei given that the Wi-Fi Alliance is responsible for developing and adopting Wi-Fi technology. Likewise, SD sets the industry standard for SD memory cards used in digital cameras and phones.


Why are all US companies following the US government's request so quickly?

Very briefly and without complications, over the course of months, Australia warned the United States of the danger of the upcoming 5G technology, especially in the field of intelligence and espionage. After long discussions from the US side and extensive investigations on this matter, reports were submitted accusing Huawei of sharing its users' information with the Chinese government. That is why the United States recently took a decision to launch a strong campaign against the Chinese company Huawei, to prevent China's domination of 5G technology and its use of spying. Consequently, US President Donald Trump signed a National Security Order banning Huawei products in the United States. As a result, the companies began to announce the severance of relations with them.


Results of the war on Huawei

Huawei is the second largest manufacturer of phones in the world and cutting ties with it must affect in one way or another the companies that deal with it directly, whether they manufacture their own chips or even the operating system, or China may respond by banning American companies in China such as Apple and many other companies American. But such decisions are difficult for consumers as they have to suffer in this trade war between the United States and China. So what are the consequences of a boycott on those companies?

Google loses $ 425 million annually after the ban on Huawei

A stock research firm named Nomura Instinet disclosed and openly announced this loss. Unfortunately, Google cannot do anything about this loss as long as Huawei remains on the blacklist.

According to Instinet estimates, Huawei has 500 million smartphone users worldwide, 52% of whom are in China alone where the Google Play store is not available. The other markets that have a major influence on this decision are Asia, with the exception of China, and Europe.

Google has reaped a huge amount of Google Store sales in 2018, amounting to $ 7 billion, of which $ 388 million came from Huawei phones only, and the most important market for these sales is Europe.

The report also stated that the impact of that loss on Google will not last for long. Because many people will move from Huawei to other phones for the lack of Google products, despite the announcement of Huawei about its operating system, but users are not sure of that.


China threatens to ban Apple in China

As a result of this boycott, China is also able to retaliate, and that will be by banning the products of the third largest smartphone maker in the world from trading in China.

One analyst, Gold Sachs, estimated that if Apple were to be banned in China, it could lose nearly 29% of its profits if China continued the ban. China is responsible for 17% of sales of Apple products, and this ban may be alarming news for Apple.

Fortunately, all of this is just assumptions. China definitely should not ban Apple. Otherwise, the losses on the Chinese side will be heavy, as they are facing difficult choices. Yet banning it would be a statement to Trump that China will not be intimidated and threatened by such decisions, and it can make courageous decisions as well. Do you think that China would be reckless and take a similar step?


Apple plans to move production lines to India

Although there is speculation that Apple is looking to move its production lines to India, and that this will help develop its market there, Apple will face many difficulties. Analyst Goldman says the move is only preferred if Apple is considering switching permanently from China. If it does, it will have an impact on China's technology system and domestic work.


Apple is heading to Pegatron in Indonesia to assemble MacBooks and iPads

Taiwanese company Pegatron plans to assemble MacBook and iPad devices in Batam, Indonesia, with PT Sat Nusapersada. This was confirmed by Abdeen Hasibwan, CEO of that company, who said that the products will be shipped to the United States without specifying the name of the company, and he believes that it is Apple in the first place.

The report says that Pegatron has invested $ 300 million to renovate two plants in Indonesia.

Moving production lines outside of China may help Apple avoid being hit by tariffs in the escalating trade war between the United States and China. Reports claim that Foxconn has already started experimental production of iPhone X categories in India.

Many countries, especially European ones, have strong economic ties with China, and many are still attracted to Huawei's low-cost products. Unlike the United States, which accounts for only a small percentage of Huawei's revenue. Taking decisions similar to those of the United States is difficult for these countries. Last March, Germany, which is one of the largest European markets for Huawei, said it would not prevent the company from using 5G technology, but would instead tighten safety standards for Huawei or other companies.

Will the Chinese respond to Trump's sanctions without considering their implications? Let us know in the comments.

Sources:

techdator | techdator | iclarified

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