A mid-glitzy and CES Consumer Electronics show last week in Las Vegas charm, a message that made a particularly harsh note for Chinese handset maker Huawei. Despite months of preparations, the U.S. giant AT & T announced on Monday that it would withdraw its sales of Huawei’s smartphones.
The decision was prompted by political pressure on U.S. politicians over AT & T, which wrote letters to the federal regulator FCC, which has to approve the sale of cell phones and other devices in the United States and has been eyeing Chinese espionage, Especially Huawei’s role in espionage. “Richard Yu, chief executive of Huawei’s consumer division, had to introduce his new Mate 10 handset at CES and see a planned $ 100 million in marketing expenses and promised no government The intervention becomes ashes.
For Huawei, this is a hard to understand story. Despite its annual revenue of $ 75 billion, making it the world’s largest maker of telecommunications equipment, including cell phone antennas and cell phones, Huawei has repeatedly been rejected for its suspicion that its origins make it unreliable. Former U.S. politicians, whose founder Ren Zhengfei was once a Red Army officer, is a stain that can not be washed away. Australia also forbids it from providing network equipment.
But Huawei is not alone. Earlier this month, the CFIUS may block overseas acquisitions and prevent Chinese company Ant Financial from buying Moneygram, a U.S. remittance business, for $ 1.2 billion. CFIUS does not believe that U.S. citizen data will be protected.
Last fall, the Department of Homeland Security told authorities to stop using Kaspersky Lab, a Moscow-based company that supplies anti-virus and cyber-security products because it “fears that certain Kaspersky officials and other government agencies in Russia’s intelligence service “. It is still too early to say whether this is a model for the Trump administration. His leaders have repeatedly stated that China is tearing up the United States but later, it has taken no action.
If Google, Facebook and Twitter are able to sell their services in China through advertising and social networks, will Huawei be allowed to enter the Chinese market, but will the United States seek exchange? It is not clear yet.
However, the process of action seems to be more protectionist than the opening bid. Ben Thompson, who runs Stratechery’s technology analysis newsletter, believes the tension between China and the United States is “likely to become one of the biggest in 2018 in science and technology.”
The rejection of AT & T last week was really important to Huawei because it could drastically reduce its future. After the 2012 report by the U.S. Housing Intelligence Commission (HIC), it has been banned from selling its telecommunications equipment in the United States and has been acquired several times. But it hopes to make a difference on smartphones, the 2012 report did not stop.
Although it is the world’s third-largest maker of smartphones and China’s largest and largest cellphone maker in the world, its growth rate is already saturated and everyone has one.
However, the United States, the second largest market in the world, has not yet been effectively utilized. With AT & T, an operator that originally introduced the iPhone in 2007, it’s time to start a new era and realize Huawei’s ambition to surpass Apple and Samsung. Instead, it reiterated that the old rules still exist. Non-carrier sales in the United States are less than 10% of the $ 170 million of the year, which is one of the reasons why Apple and Samsung own 70% of the market: all operators sell them.
Huawei’s disappointment may be amplified by the success of Britain. When British officials expressed their concern over Huawei’s provision of network equipment to BT, in November 2010 the company may include a “back door” that allows China to conduct long-range spies and even shut down the system, setting up a company called “Cell” Supervised by GCHQ, where the device and software code can scrutinize any flaws, so far this has drawn attention.
In the meantime, Huawei is the second-largest supplier of smartphones to European countries such as Finland, Italy and Spain, where lower-cost models are more valuable than Samsung.
However, the company did not give up. In a statement from AT & T, Huawei said: “Although the Huawei Mate 10 Pro will not be sold by US carriers, we will continue to work in this market now and in the future. US customers need better options as leaders in technology and innovation Huawei, Huawei prepared to fully meet this demand.
Yu discussed the topic directly at this depressing Mate 10 conference. Standing in front of a slide that reads “Things I Want to Share,” he told viewers that for six years the company has stood out from the world’s third-largest smartphone sales market with more than 70 million users. Yu said earlier that his ambition is to surpass Apple and Samsung to become the first.
He will have to hope that in the next six years, Huawei will overcome political obstacles to technical obstacles. But since the 2012 HIC report for five years, apparently they will not leave.