China’s largest smartphone manufacturer Huawei is banned in the United States. Analysts insist that the main reasons for banning Huawei are its mobile phone chip business, telecommunications equipment business, and technical advancement.
Although Huawei returned to the US market, it had to encounter a huge resistance. All Huawei’s US partners have confirmed to give up Huawei’s mobile phone sales. However, Chinese mobile phone manufacturers besides Huawei had not faced any problems in the United States.
Why is Huawei actually banned in the United States
A few years ago, Huawei was banned in the United States citing the risk on National security. Huawei had to fade out of the US market, focusing mainly on Europe. However, Huawei returned to the United States in 2018 in the face of declining handset sales at the end of last year but suffered a major setback.
Operators such as AT&T and Verizon confirmed that under pressure from politicians in the United States, Huawei’s flagship mobile phones have been abandoned. Recently, Best Buy, the largest consumer electronics retailer in the United States, also stopped its cooperation with Huawei.
Huawei is suffering in the United States, due to the absence of cooperation between operators and popular third-party retail partners. However, in recent days, executives of Huawei’s mobile business have said that they will not give up the US market.
Are other Chinese smartphone Manufacturers banned in the United States?
The news from Huawei made some people think that the U.S. government has blocked all the Chinese mobile phones from the US market, but this is not the case. At present, ZTE, Lenovo Motorola, TCL, and other companies have all gained a certain share in the United States. Among them, ZTE has a share of more than 10%, has a number of operator partners, and also has maintained the presence of its brand.
According to media reports, sales of Chinese mobile phones in the United States have been good in recent years. Among them, U.S. telecommunications companies have abandoned the subsidy system that has lasted for many years. Consumers now have to buy mobile phones at full price. For example, the purchase cost of an Apple mobile phone changed from 199 US dollars to 650 US dollars.
This change has caused some consumers to switch to more cost-effective Chinese mobile phones. ZTE, TCL, and Motorola have also launched low-end smartphones in the range of 200-300 USD in the United States. The specifications and features of these phones are not weaker than Samsung’s high-end models.
Recently, ZTE and TCL have launched ultra-cheap mobile phones in the United States. The price of these newly launched phones is about 80 US dollars. These manufacturers want to use these cheap mobile phones to cover price-conscious consumers and prepaid markets in the United States.
First Reason for Huawei being banned in the United States
According to the analysis of AndroidCentral, there are two reasons that forced the US government to obstruct Huawei’s market expansion.
The first reason is Huawei’s mobile phone chip business. Today, Huawei is the only Chinese mobile phone manufacturer to research and develop large-scale mobile phones using its own mobile phone chips. Xiaomi has previously conducted R&D and manufacturing, but it is still in the stage of small-scale tests.
We are aware that Huawei develops its own chip for its smartphones. This is rare in the scenario of global smartphone industry as only a few manufacturers like Apple and Samsung are manufacturing their own chip for their smartphones.
In addition to mobile phone chips, Huawei is also one of the top telecommunications equipment suppliers in the world. Therefore, Huawei’s products cover consumer-end equipment and communication products for telecommunication companies.
Huawei’s extensive distribution of these services makes it difficult for the outside world to independently review Huawei’s activities in the communications process. The U.S. government is also concerned that parts of Huawei’s equipment may be used for monitoring communications and compromise information security.
Of course, Huawei has repeatedly stated that the U.S.’s suspicion of the security breach is not true. Huawei’s mobile phones or telecommunications equipment have been sold in hundreds of countries and regions around the world, and we have not seen any incident of security breach up to date.
Second Reason for Huawei being banned in the United States
According to analysts, another reason for banning Huawei mobile phones in the United States is the economic interests of the United States.
According to the latest statistics, Huawei exceeded Ericsson of Sweden last year and became the world’s largest telecommunications equipment manufacturer. Huawei has played a very active role in setting the standard for communication or designing the 5G network.
In addition to Huawei, China also has other telecommunication equipment manufacturers such as ZTE. However, these companies generally do not produce their own parts but purchase large quantities from foreign companies such as Marvell and Broadcom.
In addition to the involvement of Huawei in the business of telecommunications equipment, it has also put its hand of artificial intelligence, including consumer products and telecommunications equipment business. Obviously, the United States does not want Huawei to lead the next-generation communications technology.
Not long ago, the Trump administration blocked Broadcom’s unfriendly takeover plan of Qualcomm. United States was concerned that if Qualcomm went into the hands of a foreign company, it would affect the superiority of the US in technology and mobile communications in the future. This would eventually let China, which owns Huawei, to take the lead.
Broadcom has said that it will set up funds to train American personnel to ensure that the United States has a technological advantage in the field of telecommunications. However, this promise couldn’t satisfy the U.S. government and Trump failed the acquisition of Qualcomm by Broadcom.