Huawei’s 2020 outlook has always been down. Its future is still hanging in the balance despite having a record number of phones shipped. So long as there is a fear of the company’s security threat, the sanctions on the company are expected to stay.
The United States isn’t the only country wary of the company. The United Kingdom has also started its embargo on the Chinese company’s products. There seems to be no light at the end of the tunnel for Huawei. Unfortunately, another bad news has been served on their doorsteps.
TSMC of Taiwan was drawn from the table early on. As such, Huawei was forced to check out other options as its chipset manufacturers. Unlikely as it seemed, Huawei reportedly considered Samsung. Unfortunately, the rumors on a possible workaround have just been put to rest.
Samsung Electronics and SK Hynix, another Korean company, will reportedly stop selling chipset parts to Huawei. This breaking news was brought to the spotlight by Chosun Ilbo, a Korean news site.
What this means is that Huawei is already hanging by its fingers on the edge of the cliff. After Samsung, it doesn’t really have other viable options to choose from. In other words, the stockpile of Huawei for this year leading to 2021 is limited unless the sanction is lifted.
The U.S. sanction on Huawei is ruthless. It stops any foreign company from selling to Huawei any new tech that uses equipment or software made in the U.S. In other words, the Chinese company is left on its own to fend for itself.
The company will not be able to produce their smartphones without chipsets. However, this isn’t their only problem. They also have to think of creative ways to keep their customers and fans in their fold. After Google announced its withdrawal of Android support from Huawei, global sales of the Chinese company tanked.
It is now just buoyed by loyal and patriotic users in China. Without it, the entire smartphone division of the company could flip upside down.
In an answer to the OS problem, Huawei promises to provide HarmonyOS as soon as possible. They promise to make this as powerful as Android. However, it will take years for the company to perfect this system. By then, sanctions could still be intact, which will severely limit their development.
It remains to be seen how Huawei will react to the U.S. sanction on them. They maintain that their hands are clean.
Image from Runrun2/Shutterstock
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