The increase in the sale of smartphones has also increased the use and popularity of mobile apps. People are spending their time pursuing their favorite hobbies and passions, and many are even winning big.
The blacklist prepared by the Trump administration raised concerns over the future of Chinese smartphone companies like Huawei. But Trump seems to have retraced his steps in the G20 summit and provide a sigh of relief to Chinese manufacturers. Interestingly, Huawei is already looking forward to a bright future, with record sales that can even overtake Samsung in the coming years.
But why did Trump blacklist Huawei in the first place? And how does Huawei plan to take advantage of the backtrack?
Before we go into the details, let's first take a brief look at Trump's move.
The Blacklisting of Huawei
The US Commerce Department decided to add Huawei to an entity list in May 2019. The move disallowed the Chinese company to purchase components like microprocessors from American companies. The allegation against Huawei was that the company helped Beijing in espionage attempts and posed a security threat to the country. Huawei, on its part, has always denied the allegations.
Consequently, Huawei got a breather when President Donald Trump met his Chinese counterpart, Xi Jinping at the G20 Summit in Japan in June. The presidents had a talk that obviously involved Huawei, and on June 29, Trump told reporters that US companies are allowed to sell components to Huawei. He also added that the move implies that there was no significant security threat from Huawei to the nation.
Huawei Welcomes the Move
Like mobile betting on a sports event, Huawei appears to have placed their "mobile bets" already, being quick to welcome the move and took to Twitter to express their happiness. The company described the move as a "U-turn" and revealed that they are again allowed to purchase American technology.
The move by Trump to lift the ban seems to have been fueled by deep concerns over losing US business. A lot of American companies supply components to the Chinese giant and the blacklisting could have resulted in losses of billions of dollars.
Huawei would also have scrapped American companies from its supply chain, something not very beneficial to the US economy. Trump said that he would allow American companies to sell products to Huawei even though it may surprise many people.
Huawei Looks Forward to a Bright Future
Huawei had already been posting an impressive profit and sales figures before the blacklist was announced. The company recorded a 40% year-to-year increase in revenue in the first quarter of 2019, amounting to US$27 billion. In the face of the blacklist, Huawei tuned down their forecast and announced cutting smartphone shipments by around 30%.
After the backtracking from Trump, Huawei now plans to sell more than 260 million units of smartphones in 2019, overtaking their earlier forecast of 250 million units. Huawei already holds 50% market share in China and sells its products in numerous countries. In fact, if things go according to the forecast, Huawei may overtake Samsung as the top global manufacturer by 2020.
Do you think Huawei will be able to beat Samsung as the number one smartphone company? Leave your opinions in the comments!