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Huawei Will Have Another 90 Days To Get US Supplies

Days later, Huawei was in the US Department of Commerce’s list of entities. This has prevented the company from accessing its US-based supply chain. In the US, the Trump administration granted the Chinese manufacturer a 90-day postponement. At this time, US companies to send Huawei parts and software required to maintain and support existing networks and equipment, including software updates and patches. With that 90-day period expiring on Monday, unidentified sources told Reuters that the US will extend the temporary general license for another 90-day period.

Huawei is punished by the US for being a threat to national security; This is because the Chinese government can ask the producer to spy on his name at any time. US lawmakers fear that the company has installed backdoors on their devices that will send information to Beijing once they are enabled. Huawei, of course, has repeatedly denied this and President Liang Hua has offered to sign a “No Spy” contract. Although the ban should harm Huawei. Last year it spent more than $11 billion on supplies of American origin. And this is an income that companies like Qualcomm, Intel and Micron will find difficult to replace. Huawei was Micron’s most important customer last year. And the memory chip provider will not be able to compensate for the loss of revenue of other companies.

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Huawei Has Sent 118 Million Phones Worldwide During The First Half Of This Year

Huawei

Huawei’s ban also remains a possible currency of exchange. So, the US can play in an attempt to obtain favorable conditions from China during future job interviews. Both countries are involved in a trade war that will intensify on 1 September. This is the date on which a 10% tariff will be applied to more than $300 billion of other Chinese products imported into the States. While some products such as mobile phones ) are included in this level of products. President Trump has delayed the taxation of some products (such as the iPhone) until December 15th. The president said he had done this so as not to make this product group more expensive during the Christmas shopping season.

However, some popular Apple devices, such as the Bluetooth AirPods wireless headphones. and the Apple Watch will receive a 10% fee starting September 1st. Apple will have to decide whether to absorb some or all of the additional tax or transfer it to consumers in the form of higher prices. Some cases for the iPhone and iPad already have an import tax of 25%, but Apple is paying the additional costs to keep the retail price of these accessories.

Apple And Samsung In The Second Quarter

Huawei should have become the largest smartphone manufacturer in the world for the fourth quarter of this year. Last year, the company sent 206 million phones to finish third behind Samsung and Apple. For the first quarter of this year, the company delivered 59 million units, over 50% a year. This placed it in second place, ahead of Apple but behind Samsung. While the company sent another 59 million phones during the second quarter. The three-month period from April to June has historically led to strong sequential gains in the first quarter. The flat results obtained in the second quarter of this year do not bode well for the company. And indicates that, although it has delivered 118 million phones in the first half of 2019. The ban has seriously damaged the Huawei smartphone business.

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Last month, Trade Secretary Wilbur Ross said his office has received more than 50 special license applications. These are to sell to Huawei and expects to receive more. Until Friday evening, the commerce department had no comment on the rumor.

(Via: Reuters)

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Rabia Siddique

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