Moscow, June 3 — “News. The economy is” Huawei Technologies is redefining its goal to become a world leader in sales of smartphones in 2020 from getting blacklisted in the United States, which is reflected in the Chinese vendor access to services crucial to international sales, reports the South China Morning Post referring to one of the top managers of the company.
Huawei retained its second place in sales of smartphones in the first quarter of 2019. However, to catch up and overtake Apple until the end of the year, not to mention the fact to win the championship over the market leader Samsung, the Chinese company, apparently, will not work.
Currently, Huawei closely monitors and assesses the situation after the U.S. government banned American companies from cooperating with Huawei, said Min Chao, President of Honor, one of the smartphone brands Huawei, at a media briefing in Shanghai.
“In this situation, it is still too early to say whether we will be able to achieve the goal,” said Zhao, answering questions about the plans to circumvent Huawei, Samsung Electronics and become the world’s largest smartphone manufacturer until the end of 2020.
In mid-may, the President of the United States Donald trump has signed a decree that introduced a state of emergency to protect information and communications infrastructure of the United States from foreign threats. In addition, Washington has been calling for partner countries to abandon the use of Huawei equipment.
After that the cooperation with Huawei has suspended Google. In this regard, Huawei “will immediately lose access to updates of the Android operating system and subsequent versions of its smartphones outside of China will also lose access to popular offers and services, including the Google Play Store and Gmail,” says Reuters.
Then Panasonic refused to supply Huawei components, and Microsoft has removed from the catalog of equipment that can be used for cloud service Azure Stack, products Huawei.
Recently it became known that involved in Assembly technology company Foxconn has suspended production of the smartphone brand Huawei, reports the South China Morning Post. It is clarified that the suspension affected part of the production intended for the European market. As noted, production will be suspended indefinitely.
The reduction of production lines was because she Huawei reduced the volume of orders for the new smartphones. Rather, it is those devices that had to go for export. The company reduces sales abroad, it is no secret. For example, the flagship Honor 20 in China have already gone on sale in Europe yet. In addition, the Chinese price of the new model are noticeably lower than the European one. If the London presentation for the version Honor 20, the company asked for about $550, then the Chinese people, it sells the same model for $390.
For smartphone manufacturers to work flexible hours — this is normal, they explained, noting that often customers can reduce or increase the number of applications depending on the conditions. However, in the case of Huawei is not yet clear whether the reduction in the production of temporary, said the sources.
Another interviewee reported that in early 2019 Foxconn had to hire new staff to cope with growing sales Нuawei. In companies this information is not commented. Despite the fact that the curtailment of production occurs on the background of the conflict with the United States, this fact may be quite uninvolved in the situation, says the publication.
TF International Securities analyst Ming-Chi Kuo presented two scenarios in which events can develop in the smartphone market. According to the expert, if Huawei will release its own operating system for mobile devices by July, 2019 the sales of smartphones of the Chinese company will be reduced from 270 to 240-250 million units.
If Huawei does not have time to release its own operating system in the second half of the year, or this system will not be able to compete with Android, smartphone shipments could fall to 180-200 million units.
This analyst noted that the biggest challenge for Huawei in the long term can be a loss of confidence in the brand, if Chinese companies fail to provide stable supply.
Meanwhile, earlier Corporation Huawei filed a lawsuit against the U.S. government with a demand to recognize the decision on introducing Chinese companies to the black list contrary to the us Constitution.
In March, the company filed a lawsuit in Federal district court for the Eastern district of Texas against the United States demanding to recognize as unconstitutional and to reject the law on state defence 2019 (NDAA), which prohibits Federal agencies to buy products of Huawei. The trial in a simplified procedure will allow the company to reduce the time of the trial.
Huawei accuses the U.S. government in inconsistency of the ban on the use of equipment technology giant structures. Chinese vendor requires the court to decide the case in his favor, because the previous ban, according to the company, was contrary to American laws like the NDAA and the US Constitution.
“The U.S. Congress repeatedly failed to present any evidence to justify a ban on equipment from Huawei. We have to resort to legal measures as appropriate, and last resort” — presented in a statement the company’s official statement, the words of the CEO of Huawei Guo ping.
The ban imposed by article 889 of the first national defence act United States also does not allow U.S. government agencies collaboration with those who work with Huawei and they cannot conclude contracts with them to provide subsidies and loans.
In a statement, noted that Huawei requires to recognize the part against China law of the United States national defense unconstitutional. In a statement, Huawei stated that the law prior to the adoption of a judicial decision determines that the company is guilty, and against it imposes serious limitations.
The company believes that the purpose of the American administration is “crowding out Huawei from the market the United States.”
If the court will satisfy the claim of Huawei, the entry of the company into the “black list” will also be recognized as illegal and a manufacturer of telecommunications equipment will be able to continue its operations in the country. Court for the Eastern district of Texas scheduled a hearing on the case on 19 September. It is reported that the review may take several months.
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