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I didn't realize the effect would be so immediate. I thought it may affect next year's model but this current gen was fine. If it affects current gen smartpho

I didn't realize the effect would be so immediate. I thought it may affect next year's model but this current gen was fine. If it affects current gen smartphones could it also affect current gen 5g equipment? This would mean hauwei is essentially dead in the water.

badrabbit 7y ago
They don't want to sit on inventory, liquidity is important to them in this situation
panpanna 7y ago
I think they are doing this to not loose money. They will lose market share but I guess they can always get it back.
d33 7y ago
This actually makes me wonder - what makes them unable to sell outside of Europe/USA? I heard of them being kicked out of SD/WiFi associations, but how does this affect them in China?
- the_economist 7y ago
  It's now illegal for all the major players to sell them microprocessors. Can't build a smartphone without one. "The United States last week blocked Huawei from buying goods made from 25% or more of U.S.-originated technologies or materials"
  - Mirioron 7y ago
    I wonder what the long-term implications will be on American businesses for this. Will non-US major companies be wary of relying on US suppliers?
    - ulfw 7y ago
      That's exactly it. The US is shooting itself in the foot. Because the message this sends to the bigger world is: don't get too successful or we will kill your business. The irony is that that is exactly what western companies blame China for.
      - trophycase 7y ago
        Lol how is that in any way the message being sent, give me a break. This has way more to do with the fact they are Chinese and more or less state sponsored than it has to do with them "being successful"... I genuinely don't understand why people are so quick to defend China.
        hahan_may 7y ago
        because people has hated U.S., ever since it rescued the world from the tyranny of nazis. It's human psychology.
      - mistermann 7y ago
        > The US is shooting itself in the foot. This is one possible outcome. Another is that China learns to be a bit less self-serving and more cooperative with the rest of the world. > Because the message this sends to the bigger world is: don't get too successful or we will kill your business. That seems like a bit of a biased interpretation. Do you believe the US is literally trying to kill Huawei, or might it be possible that this is a negotiating tactic to get them to realize and acknowledge the value they receive from the rest of the world generously trading with them, by demonstrating the consequences of what happens when someone treats them in the way they treat the rest of the world (I am referring to access to their markets)? > The irony is that that is exactly what western companies blame China for. In the Alanis Morissette sense maybe.
        scotty79 7y ago
        > Another is that China learns to be a bit less self-serving and more cooperative with the rest of the world. Because they have such a great example given by USA to follow.
  - tyingq 7y ago
    Would be interesting if this ultimately results in a win for RISCV.
    - panpanna 7y ago
      Huawei may support riscv just to piss off ARM. ARM is a british company owned by a Japanese group. Them getting involved must sting much harder than Qualcomm.
- Nokinside 7y ago
  Being kicked out of Android infrastructure kills sales of new models. They will run out of components. They need licenses to manufacture and sell phones in China. Even with all the problems with their IP enforcement, China is not total IP outlaw. They follow the basic rules.
  - ms4720 7y ago
    They have basic rules, follow might be a bit strong
- ekianjo 7y ago
  You need semiconductors to make smartphones. China is mainly doing assembly.
  - panpanna 7y ago
    Nope, China went from assembly lines to owning the entire chain 5-10 years ago (not always by fair play, but still)
- anonffghhuyv 7y ago
  > kicked out of SD/WiFi associations They are back in now.
narnianal 7y ago
read up on the Huawei CEO interview. They won't compete over tech where they don't feel to be a technical market leader. In 5G they claim to be 2-3 years ahead, so they will fight for it and think they have a good chance of winning even if competed against. But for smartphones apparently they don't feel strong enough, so they'll happily sacrifice it instead of competing. The problem with competition is, although it's good for the consumer, it hurts the business. So if you have to choose between battling for number one or getting reduced from number 2/3 to number 10, the latter might be the cheaper option. And then you can use the saved resources to compete in the fight that really matters. That's fighting spirit. I wish in the west we could see any of this. Instead we see bickering on all political fronts.

badrabbit 7y ago

They don't want to sit on inventory, liquidity is important to them in this situation

panpanna 7y ago

I think they are doing this to not loose money. They will lose market share but I guess they can always get it back.

d33 7y ago

This actually makes me wonder - what makes them unable to sell outside of Europe/USA? I heard of them being kicked out of SD/WiFi associations, but how does this affect them in China?

the_economist 7y ago
It's now illegal for all the major players to sell them microprocessors. Can't build a smartphone without one. "The United States last week blocked Huawei from buying goods made from 25% or more of U.S.-originated technologies or materials"
- Mirioron 7y ago
  I wonder what the long-term implications will be on American businesses for this. Will non-US major companies be wary of relying on US suppliers?
  - ulfw 7y ago
    That's exactly it. The US is shooting itself in the foot. Because the message this sends to the bigger world is: don't get too successful or we will kill your business. The irony is that that is exactly what western companies blame China for.
    - trophycase 7y ago
      Lol how is that in any way the message being sent, give me a break. This has way more to do with the fact they are Chinese and more or less state sponsored than it has to do with them "being successful"... I genuinely don't understand why people are so quick to defend China.
      - hahan_may 7y ago
        because people has hated U.S., ever since it rescued the world from the tyranny of nazis. It's human psychology.
    - mistermann 7y ago
      > The US is shooting itself in the foot. This is one possible outcome. Another is that China learns to be a bit less self-serving and more cooperative with the rest of the world. > Because the message this sends to the bigger world is: don't get too successful or we will kill your business. That seems like a bit of a biased interpretation. Do you believe the US is literally trying to kill Huawei, or might it be possible that this is a negotiating tactic to get them to realize and acknowledge the value they receive from the rest of the world generously trading with them, by demonstrating the consequences of what happens when someone treats them in the way they treat the rest of the world (I am referring to access to their markets)? > The irony is that that is exactly what western companies blame China for. In the Alanis Morissette sense maybe.
      - scotty79 7y ago
        > Another is that China learns to be a bit less self-serving and more cooperative with the rest of the world. Because they have such a great example given by USA to follow.
- tyingq 7y ago
  Would be interesting if this ultimately results in a win for RISCV.
  - panpanna 7y ago
    Huawei may support riscv just to piss off ARM. ARM is a british company owned by a Japanese group. Them getting involved must sting much harder than Qualcomm.
Nokinside 7y ago
Being kicked out of Android infrastructure kills sales of new models. They will run out of components. They need licenses to manufacture and sell phones in China. Even with all the problems with their IP enforcement, China is not total IP outlaw. They follow the basic rules.
- ms4720 7y ago
  They have basic rules, follow might be a bit strong
ekianjo 7y ago
You need semiconductors to make smartphones. China is mainly doing assembly.
- panpanna 7y ago
  Nope, China went from assembly lines to owning the entire chain 5-10 years ago (not always by fair play, but still)
anonffghhuyv 7y ago
> kicked out of SD/WiFi associations They are back in now.

narnianal 7y ago

read up on the Huawei CEO interview. They won't compete over tech where they don't feel to be a technical market leader. In 5G they claim to be 2-3 years ahead, so they will fight for it and think they have a good chance of winning even if competed against. But for smartphones apparently they don't feel strong enough, so they'll happily sacrifice it instead of competing. The problem with competition is, although it's good for the consumer, it hurts the business. So if you have to choose between battling for number one or getting reduced from number 2/3 to number 10, the latter might be the cheaper option. And then you can use the saved resources to compete in the fight that really matters. That's fighting spirit. I wish in the west we could see any of this. Instead we see bickering on all political fronts.