Huawei's Rise and Fall: A Global Impact

Huawei's explosive rise in the smartphone market has been stunted by a series of setbacks, including being banned from participating in the 5G rollout in several countries. This ban was the first to be imposed on Huawei by Australia, followed closely by New Zealand and the US. The restrictions imposed by these countries have had a significant impact on Huawei's business, with many companies cutting ties with them.

One of the most damaging effects of the ban has been the restriction on Huawei's access to US technology. Companies such as Google, Intel, Qualcomm, and ARM have all stopped doing business with Huawei, which has made it difficult for the company to develop new smartphones. The SD Association, a non-profit organization that sets standards for memory cards, has also banned Huawei from including microSD slots in their future products.

This ban has had far-reaching consequences for Huawei's business. The company sources a large portion of its components from US companies, which means that it will be difficult for them to find alternative suppliers quickly. To mitigate this risk, Huawei has stockpiled about three months' worth of US components while they figure out how to make a successful transition.

Huawei's Response

Despite the challenges posed by the ban, Huawei is taking steps to respond to the situation. The company has been working on its own mobile operating system, complete with an app store, in order to reduce its dependence on Google. This move is seen as a way for Huawei to maintain control over its user experience and data.

However, it's unclear whether Huawei will be able to release its new operating system quickly enough to meet the demand from customers who are currently using their smartphones. The company has also faced criticism over its lack of transparency regarding its relationship with China and its potential links to the Chinese government.

The Ban's Impact on Consumers

For consumers who own a Huawei product, the ban means that they will continue to receive Android software updates for the next 90 days. However, after that time, their phone will stay as it is forever, unless the ban is reversed at some point in the future.

It's also unclear whether Huawei will be able to release its own operating system quickly enough to allow customers to upgrade to it. The company's notebooks, which run on Microsoft Windows, are also affected by the ban. Microsoft has yet to come to a decision regarding their license for Huawei's notebooks.

The Future of Huawei

Huawei is worth billions of dollars and will do anything to maintain its success in spite of this setback. However, the company's future is uncertain, and it remains to be seen how they will respond to the challenges posed by the ban.

On the one hand, the ban has highlighted the need for greater scrutiny of the tech industry's supply chain. As companies like Huawei have shown, there are risks associated with relying on a single supplier for critical components. This has led to calls for greater transparency and regulation in the tech industry.

On the other hand, the ban has also demonstrated the difficulties faced by tech companies when trying to innovate and compete in a rapidly changing market. As Huawei has shown, it's not enough to simply copy existing technology; innovation requires significant investment in research and development.

The impact of the ban on Huawei's business is being closely watched by fans and critics alike. Will the company be able to overcome this setback and continue to innovate? Only time will tell.

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Conclusion

In conclusion, Huawei's rise and fall is a story that has captured the attention of fans and critics alike. The company's innovative approach to technology and its rapid growth have been major factors in its success. However, the ban imposed on Huawei by several countries has had a significant impact on the company's business.

As we look to the future, it will be interesting to see how Huawei responds to these challenges. Will the company be able to innovate and compete in a rapidly changing market? Only time will tell. In the meantime, Squarespace offers a range of tools and features that can help you create a beautiful website without breaking the bank.

Whether you're a fan of Huawei or simply interested in the tech industry, there's no denying the importance of innovation and competition. As companies like Huawei continue to push the boundaries of what is possible, we can expect to see even more exciting developments in the years to come.

"WEBVTTKind: captionsLanguage: enOver the last few months Huawei has been thesubject of heavy scrutiny, with several countriesaccusing them of spying on foreign companiesand stealing trade secrets.Huawei has even been banned from doing businesswith US companies.Which means Google is no longer allowing Androidto run on Huawei devices, which is an unprecedentedmove in the smartphone industry.So what exactly is Huawei doing wrong to receiveso much backlash from the public and privatesector?Well, that’s exactly what we’re goingto find out.This is Greg with Apple Explained, and I wantto thank Squarespace for sponsoring this video.If you want to help decide which topics Icover, make sure you’re subscribed and thesevoting polls will show up in your mobile activityfeed.Now I want to give you some background onHuawei as a company to help put these recentevents in perspective.They’re a Chinese company founded back in1987 whose primary goal was to help modernizeChina’s underdeveloped telecommunicationsinfrastructure.Because back then the US and other wealthycountries like Hong Kong had already developedadvanced telephone technology that was beingutilized by governments and companies alike.The infrastructure served as a sort’ve closedcircuit telephone system, and Huawei wantedto develop similar technology to sell in China.And how did they manage to do that?Well, they started off by buying private branchexchange, or PBX, telephone switching systemsfrom Hong Kong companies, and then resellingthose switches to customers in China.But serving as a salesperson of foreign technologywasn’t a very sustainable business model.Huawei knew they had to develop their ownPBX technology and they did so by reverseengineering the switches imported from HongKong, and developing manufacturing techniquesto produce their own telephone switching systems.By 1990 the company employed about six hundredresearch and development staffers and beganselling their technology to small businessand hotels.Their product sold well, and Huawei’s successsnowballed from there.They eventually began to sell their productsinternationally, winning contracts with theBritish telecommunications conglomerate Vodaphone,British Telecom, Australian carrier Optus,and Canadian carriers Bell Mobility and TelusMobility.Huawei also built one of the first LTE networksin world back in 2009 for TeliaSonera in Norway.All this overseas success generated 21.8 billiondollars of revenue for Huawei, and earnedthem a spot in the 2010 Global Fortune 500.But despite their rapid international growth,very few people outside of China had everheard of Huawei.That is, until their smartphones began sellinglike crazy.In fact, Huawei’s growth in the global smartphonemarket over the past four years has been anincredible achievement.While companies like Apple and Samsung havestruggled with market saturation and slowingsales, Huawei achieved 50% year over yeargrowth in smartphone sales this year, whichwas enough to outsell Apple and become theworlds second largest smartphone manufacturer.So how exactly did Huawei manage to achieveall of this success so quickly?Well, that’s where the drama comes in.The company’s rise to power was plaguedwith intellectual property infringement andindustrial espionage, here are some of themost blatant examples.Back in 2004 a company called Lemko was foundedby Motorola engineer Shaowei Pan.And right after creating Lemko, Pan visitedChina and met with Huawei’s CEO and othertop executives.It was later discovered that Lemko was createdto build wireless technology for Huawei basedon stolen trade secrets and technology fromMotorola.Pan even sent an email to Huawei’s CEO thatsaid, “If our plan can progress smoothly,Lemko will be the company we are planningto establish, and it will be independent ofMotorola Inc.”And keep in mind that Pan wasn’t just anentry level engineer at Motorola, he had beenwith the company for over ten years, had beenresponsible for 60 patents, and become Directorof Architecture in Motorola’s wireless businessdepartment.So he had access to some of the most advancedtechnology Motorola was working on.Now Pan and Huawei were eventually sued infederal court, and the case was settled confidentiallyin 2010.But the effects of Huawei’s espionage wereirreversible.Their EasyGSM base station for 2G networkshad played a huge role in the company’sgrowth, but the technology in that productturned out to be stolen from Motorola.Huawei has since become the world’s numberone wireless infrastructure company and forcedothers like Motorola out of the business.And this is just one example of Huawei’sillegal behavior.There are countless other examples that Icould probably dedicate an entire video to.They stole source code from Cisco, they willfullyviolated five patents held by PanOptis, theytried using MPEG’s AVC video technologywithout licensing it, and the list goes on.Also, keep in mind these are only the thingsHuawei was caught doing wrong, who knows howmuch they were actually able to get away with.I also want to mention that while Samsungwas sued by Apple for copying the originaliPhone, Huawei seems to have done the samething without any repercussions at all.There were even allegations that stolen tradesecrets and patents were utilized to createHuawei’s recently released MateBook X Pro.In fact, when the company tried hiring Applesuppliers to manufacture the MateBook, theyrefused, since one of the components was consideredto be an infringement on Apple’s patent.Now as we cover Huawei’s recent controversiesyou’ll notice that things start to get morepolitical, and I’m going to do my best tosimply report the facts.So in 2018 the five eyes intelligence alliance,which in made up of Australia, Canada, NewZealand, the United Kingdom and the UnitedStates, alleged that Chinese cellular networkequipment may contain backdoors that allowsurveillance by the Chinese government.Keep in mind that Huawei, a Chinese company,was the world’s number one supplier of telecommunicationsequipment.So naturally governments all over the worldbegan to grow suspicious of them.Especially since they have a track recordof illegal and immoral behavior.But Huawei hasn’t taken these allegationslying down.They’ve criticized the claims as being politicallymotivated without any evidence to back themup.Huawei said they’ve never placed backdoorsin their products and wouldn’t give theChinese government access to user data.But I should mention that according to Chineselaw, companies are required to assist thegovernment intelligence agency on the collectionof user data as needed.Although this also happens in other countrieslike the US.But despite the claim’s uncertainty, thecontroversy led to countries debating whetheror not to use Chinese telecommunication equipmentin the development of their new 5G infrastructure.And this is when everything started to gosouth for Huawei.Australia was the first country to ban Huaweiand their Chinese competitor ZTE from their5G rollout, and it wasn’t long before NewZealand and the US followed suit.But perhaps the most damaging backlash Huaweihas experienced was from President Trumpsexecutive order.Which said US companies are restricted fromdoing any business with them.And that has led to a domino effect of companiescutting ties with Huawei in many differentways.Google is no longer allowing Android to runon new Huawei devices, Intel, Qualcomm, andARM aren’t letting Huawei use their chips,and the SD Association isn’t letting Huaweiput microSD slots in any of their future products.And this isn’t even considering all of themiscellaneous components Huawei sources fromUS companies that they’ll no longer haveaccess to.And if you’re wondering how in the worldHuawei’s going to respond to all of theserestrictions, we have some clues as to whatthey might be planning.When it comes to the software, Huawei hasactually been working on their own mobileoperating system, complete with an app store,for quite some time in order to reduce theirdependence on Google.But they’re likely facing unexpected pressureto finish the OS much earlier than originallyplanned.And if we’ve learned anything from Windowsphones, it’s that establishing an alternativeto iOS and Android is a huge challenge.Especially when considering Huawei won’tbe able to include apps from US developerson their platform.It’s also worth mentioning that this banwill effect more than just Huawei’s smartphones.Because their notebook computers also usean operating system from a US company, Microsoft.And it’s unknown if Huawei is developingtheir own desktop OS as well.Now when it comes to hardware, things don’tget any easier.Like I said before, Huawei sources a largeportion of their components from US companies.And without those parts, the threat of manufacturingslowdowns appears imminent unless Huawei canquickly find new suppliers outside the US.But in the meantime Huawei has stockpiledabout three months worth of US componentswhile they figure out how to make a successfultransition.The problem is certain components simply cannotbe replaced.For example, if you’ve been banned by theSD Association, that means you can’t includeSD cards in your products at all.So this is definitely an uphill battle forHuawei that doesn’t appear to be gettingany easier anytime soon.Now what does all of this mean for peoplewho own a Huawei product?Well, you’ll continue to received Androidsoftware updates for the next ninety days.But after that time your phone will stay theyway it is forever, unless the ban is reversedat some point in the future.Now if Huawei does in fact release their ownoperating system you may be able to upgradeto it, or you may not, depending on the olderhardwares compatibility.And when it comes to Huawei’s notebooks,Microsoft has yet to come to a decision regardingtheir Windows license.Many people are assuming Microsoft will dothe same thing as Google and stop providingtheir OS to Huawei, but that’s just speculationat this point.So Huawei’s explosive rise in the smartphonemarket appears to have been stunted for thetime being, but there’s no saying wherethe story will go from here.Huawei is worth billions of dollars and they’lldo anything to maintain their success in spiteof this setback.And although government intelligence agenciesdo have valid concerns about the company,I’m hoping Huawei will remain a seriousplayer in the tech industry since heightenedcompetition benefits all of us consumers byforcing other tech companies to create thebest products they possible can.And when it comes to creating the best, Irecommend Squarespace if you want to buildthe best, most beautiful website you can.All without spending tons of money on development,designing and hosting, and without worryingabout patching or installations or any ofthat complicated stuff.Squarespace is an all in one platform witha super easy to use drag and drop interfacethat offers 100s of customizable templates.And if you get stuck or don’t know 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