Huawei Reduces Handset Orders From Foxconn Likely Reacting to Trade Restrictions

Huawei Reduces Handset Orders From Foxconn Likely Reacting to Trade Restrictions

In March, before the United States government blacklisted the Chinese telecoms giant, Huawei's consumer business group CEO Richard Yu said his company could outsell Samsung and Apple.

Huawei is willing formally agree not to spy on the US. Much of today's traffic goes through those cables and it's a huge business in which United States firm SubCom dominated the market, together with the European Alcatel-Lucent and Japan's NEC Corp. Bloomberg also quoted a telecom industry representative stating that sales of Huawei's premium smartphones fell 20 percent in the first week after the US administration announced its export ban. "We have an incredible intelligence relationship and we will be able to work out any differences", Trump said Tuesday during a joint press conference in London with British Prime Minister Theresa May.

Last week, Huawei filed a "motion for summary judgement" in its lawsuit that challenges the constitutionality of the USA law banning federal agencies from buying its products. He also revealed that TSMC's shipments for Huawei in the second half of this year will be better than the second half of last year, mainly because the world's most advanced new products require 7nm process chips.

The number of smartphones shipped will reach 1.35 billion, with the decrease being attributed to uncertainties relating US and China trade talks. It's been less than three weeks since President Donald Trump restricted the Chinese tech giant's access to Google's Android operating system and already, Huawei's smartphone business appears to be losing ground in Europe, a critical growth market.

Huawei has a backup plan to move forward with its own version of computer chips and operating systems, to decrease its reliance on on USA tech companies, said Professor David Daokui Li from Tsinghua University.

So far, Qualcomm, Intel, Broadcom, Xilinx, Qorvo, Lumentum, Synopsys, Infineon, ARM, Toshiba, and other suppliers have also announced that they would suspend their business with Huawei to comply with the US ban. But that will take some time. The US publicly asked its allies to steer clear of using Huawei products over concerns that the equipment could be used by the Chinese government to obtain private information.

"What President Trump is doing is waking the sleeping capacity of Huawei", Li said.

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