A special report suggests that Huawei is preparing for an average of 50% drop in international smartphone sales. This is as a result of Trump’s administration blacklist of Chinese tech company’s businesses.
Huawei is considering taking off the latest model of its overseas company, Honor 20 from the market. The report suggests that the phone is being released to some parts of Europe on 21st June.
However, the executives of the company are going to be monitoring the phone sales closely. They will stop the shipment of the phones if they do well in the market. Apparently, this is expected because two of France’s biggest network providers will refuse to work with Huawei.
Huawei is bracing itself for a significant drop in sales. International sales had been a major boost for the tech giant’s business in 2018. This is enough reason for Huawei to expect a significant decline in sales.
In May, 2019, the United States blacklisted Huawei which stopped some major American tech companies to stop doing business with them. This affected updates to Google’s Android OS which powers Huawei phones.
This is a huge blow for Honor 20 which will not be able to run critical apps like Gmail and Play Store without the Android software.
Google has also issued a warning to the United States in this regard. They believe that cutting Huawei off from their OS may pose a huge security risk. They believe that it will not be safe for anyone if Huawei decides to make its own Operating System.
Huawei Riding Solo
The Honor 20 is supposed to run on the most advanced Android 9 software. Interestingly, the device will run on Huawei’s new Kirin chip.
This shows that the company was not joking when it said it will work on its own independent components. It also means that they are no longer working with the Qualcomm Inc. processor.
Huawei seems very ready for the ban which is expected to take effect in a few days following the 90-day suspension of the ban. They are trying to reduce their reliance on foreign technology.
Another problem they will perhaps have with this new OS will be looking to convince app developers to tailor their apps to the new OS.
Huawei says it is now looking to grab the Chinese market in order to make up for the decline in the international market. They intend to invest in more marketing and expand their distribution channels. More deliberate pro-active measures can make it a possibility.