Google has decided to suspend its license to Android operating system to Huawei. Trump administration's action has started to impact Chinese smartphone makers Huawei already. Google has decided to stop licensing its Android OS to Chinese Telecommunication Company, in order to comply with U.S trade blacklist rules. The company however can continue to use open-source version of Android but won't be able to get the security and OS updates, along with usage restrictions on Google's apps like Gmail, Play store etc.
The move will have significant effect on millions of Huawei users and the company's global ambitions. Android operating system powers more than 80% of the world's smartphones. Huawei said they will continue to support existing customers. But if this problem isn't solved, the device will not have access to new version of Android OS called Q. "The revocation of its Android license will mean that it won't be able to provide core Google services to its smartphones," Richardson said.
"The current devices will continue to support Google services and Google updates," Francisco Jeronimo, associate vice president for European devices at IDC, told CNBC by telephone. "I think it's more of a long-term impact than very short term." In China, the story is a different. Consumers there have a limited version of the OS which doesn't come with the pre-installed Google's app like Gmail etc. For Chinese consumers, the impact is almost NILL. Many people suggest that U.S and China will reach a trade deal, and Google will resume its licensing to Huawei. In that case, things will come back to normal. However, if it is a long-term impact, the sales of Huawei will drop as well as its resale value. There won't be any consumers outside the Chinese if this situation continues.