Huawei is gradually feeling the impact of the US government’s sanctions. The future of this company and many of Huawei’s smartphone users is left open.
Once again, Huawei Technologies’ ambitions to build its own global technology ecosystem and operating system were halted shortly after the Trump administration called for domestic and foreign application developers. The US boycotts the foundation of this company.
On August 5, the US State Department launched a Clean Apps program with the aim of calling for developers to remove apps from Huawei’s online app store, citing the reason “to ensure they do not cooperate with human rights abusers ”.
Clean Apps is part of the Clean Network initiative Washington launched to exclude companies affiliated with the Beijing government.
Since President Trump announced cutting Huawei’s access to Google services in 2019, the company has struggled to develop its own operating system and app store.
“This will directly affect Huawei’s plan to expand the app development ecosystem around the HarmonyOS operating system by the end of 2020,” said Paul Triolo, head of geotechnology research at Eurasia Group.
On August 7, Huawei Consumer Business CEO Richard Yu confirmed at a Chinese tech conference that the company will not be able to produce its Kirin line of chips next September.
“Due to the effects of second of US sanctions, chip production will stop after September 15. It is likely that this will be the last generation of the Kirin chip line.
Huawei has spent more than 10 years developing chips, which is a big loss for us, “Mr. Yu shared at the conference.
The absence of chip manufacturing co-operation contracts with TSMC due to the export tightening measures that Washington introduced in May 2020 is undermining Huawei’s competitive position in the world phone market.
According to Counterpoint , giant Huawei owns 41.4% market share in China in the first quarter of 2020. It also overtook Samsung for the first time to become the world’s largest smartphone maker.
However, outside the Chinese border, Huawei is at a disadvantage when it comes to losing access to Google tasks such as Gmail, YouTube , Google Play …
To make up for this, Huawei Technologies has pledged to spend $ 1 billion attracting developers, boosting its service ecosystem, creating HarmonyOS operating system and Huawei AppGallery app store.
According to Nikkei Asian Review , Huawei Technologies has called on about 1.6 million developers to build apps for its operating system over the past year, but that number is still less than 1/10 of developers application on iOS or Android platforms.
As of June 2018, CEO Tim Cook said Apple had more than 20 million registered developers working on iOS.
If the Clean App is realized, overseas Huawei users will be severely affected. Huawei’s AppGallery was previously only widely used in China, but now it’s the only option for smartphone users around the world who can’t access Google Play.
“This is a bipolar world for app developers, they have to choose between the Chinese or international ecosystem,” said Lawrence Lin, partner at technology consulting firm DMC & Partners.
As a longtime app developer and entrepreneur, Lin added that the Chinese government has tightened many rules over the past few years, requiring international application developers to host. Their data is on local servers if they want to join this national ecosystem, leaving many small developers and startups shaking their heads when unable to provide enough resources.