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Update: Statements from Google and Huawei, other

companies join the ban


Huawei sent a statement to Ars Technica and others about the ban, saying "Huawei will
continue to provide security updates and after-sales services to all existing Huawei and
Honor smartphone and tablet products, covering those that have been sold and that are
still in stock globally. We will continue to build a safe and sustainable software
ecosystem, in order to provide the best experience for all users globally."

Trade War! USA v. China

• The US DOC gives Huawei a 90-day window to support existing devices

• Huawei’s US ban: A look at the hardware (and software) supply problems

• Google reportedly ends business with Huawei, will cut it off from Play Store [Updated]

• Trump tries to shut Huawei out of US market with executive order

• Bloomberg alleges Huawei routers and network gear are backdoored

Google issued only a terse one-liner, saying "We are complying with the order and
reviewing the implications." On Twitter, the company's official Android account was a
bit friendlier, saying "For Huawei users' questions regarding our steps to comply w/ the
recent US government actions: We assure you while we are complying with all US gov't
requirements, services like Google Play & security from Google Play Protect will keep
functioning on your existing Huawei device."

Meanwhile, other US companies have started to cut off Huawei,


with Bloomberg reporting that Intel, Qualcomm, Broadcom, and Xilinx have stopped
supplying chips to Huawei. Intel is a big one, as it means Huawei laptops are pretty
much dead. Bloomberg also reports that Huawei apparently saw this ban coming, and
has stockpiled three months worth of chips from US companies.

To add to all the drama, Huawei has a smartphone launch scheduled for tomorrow,
where it will launch the flagship Honor 20 smartphone for its value-focused "Honor"
brand. As of this writing, it seems the launch will go ahead as scheduled.

Original story follows:


President Trump issued an executive order last week banning "foreign adversaries"
from doing telecommunication business in the US. The move was widely understood as
a ban on Huawei products, and now we're starting to see the fallout. According to a
report from Reuters, Google has "suspended" business with Huawei, and the company
will be locked out of Google's Android ecosystem. It's the ZTE ban all over again.

FURTHER READING
Trump tries to shut Huawei out of US market with executive order

Reuters details the fallout from Trump's order, saying "Huawei Technologies Co Ltd will
immediately lose access to updates to the Android operating system, and the next
version of its smartphones outside of China will also lose access to popular applications
and services including the Google Play Store and Gmail app."

Huawei's loss of access "to updates" is most likely a reference to Android Q, which
hardware manufacturers get early access to. Since Android is open source, Huawei
could resume development once the source code comes out. The real killer is the loss of
the Google Play Store and Google Play Services, which unlocks access to the billions of
Android apps and popular Google apps like Gmail and Maps. Reuters claims this will
only happen to "the next version" of Huawei's smartphones, presumably meaning
existing devices with the Play Store will continue to work.

Huawei doesn't do much smartphone business in the US, so banning Huawei from
selling phones to US consumers won't change much. Huawei has made a few attempts
to break into the US market, but pressure from Congress on Huawei's individual
business partners, like AT&T and Verizon, have caused them to walk away from deals
with the company. Besides smartphones, Huawei is also one of the biggest suppliers of
network and telecom equipment in the world, and this ban will keep the company's
routers, towers, and other equipment out of US networks. An earlier Reuters
report detailed the problem the ban would cause in rural states like Wyoming
and Oregon, which have adopted Huawei equipment.

The real change here is the banning of US companies from supplying Huawei with
software and hardware. Outside of China, this move is a death sentence for Huawei
smartphones in places like Europe and India. There isn't a single viable alternative to
Google's Android ecosystem, so Google-less Huawei smartphones would have a tough
time in the market. The only company that has sort of made Google-less Android work
is Amazon, which sells forked Android tablets that are so cheap and disposable they
come in a six-pack. Amazon is also a US company, though, so the Amazon App Store
presumably wouldn't be available to Huawei, either.

Huawei's explosive growth will probably be coming to an end, if the ban sticks.
Counterpoint

In Huawei's home nation of China, not much will change. Google doesn't do much
business in China, so the Play Store and Google Play Services do not exist there. The app
store landscape is pretty fragmented as a result, with most OEMs running their own app
store or licensing a third-party app store from other Chinese companies like Tencent or
360 Mobile.
FURTHER READING
The Trump administration just forced smartphone maker ZTE to shut down

When ZTE faced a similar ban from doing business in the US last year, the company was
forced to shut down worldwide operations. According to Reuters, 25 percent of ZTE's
smartphone components come from the US, and the one-two punch of being banned
from Google's Android app ecosystem and from buying Qualcomm's smartphone chips
was too much for the company. Huawei is a lot bigger than ZTE, though, and more
independent. Qualcomm has a near-monopoly on high-end Android SoCs and cellular
connectivity technology, but Huawei is one of two Android manufacturers (the other is
Samsung) with its own chip design division. Huawei flagships all have SoCs from
Huawei's "HiSilicon" chip division, and the company even makes its own 5G modems.

If the ban really does stick, a possible future path for Huawei is to ship forked, Google-
less versions of Android with the Huawei App Store, extending its Chinese app
ecosystem to the rest of the world. Huawei has also done some development work on
an in-house operating system, but it's unclear if this would be a better option than
forking Android. Huawei is the number two smartphone vendor in the world, behind
Samsung and ahead of Apple, and saw its device shipments grow by an explosive 50
percent, year over year. Whatever decision it makes is a big deal for Google and the rest
of the Android ecosystem.

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