In July many us companies in the technology sector will report on the results of operations in the current quarter, and many developments around Huawei make to publish estimates for revenue that will not please investors. At least the relevant revelations Broadcom stock market has already reacted to the decline, and among American partners, Huawei enough companies with a high degree of dependence on the Chinese customer who is in favor of the U.S. government.
Reuters, citing its well-informed sources reported that American developers of microprocessor-based components have begun to use their leverage on the US government to achieve relief in terms of the boycott Huawei. The authorities intend at the legislative level to prohibit American companies from Huawei to supply components, which are exported to China may be contrary to the national security interests of the United States. To seek permission to export a specific product range American suppliers will only be able to special order.
According to the publication, Intel, Xilinx and Qualcomm intend to exclude from the list of prohibited exports to China products of components used in consumer devices and even servers. The task of lobbying its interests is to convince the US government of the safety of the export of the product concerned in China. Most of the damage such a ban should apply to business Huawei for the production of base stations for communication networks generation 5G.
Last year, Huawei spent for the purchase of components about $70 billion, of which $11 billion went to us companies Qualcomm, Intel and Micron Technology. The latter now try to find a compromise between respect for American law and private commercial interests. According to the source, Qualcomm intends to exclude from the list of prohibited components of the processors for smartphones and wearable devices. Some preferences for yourself and trying to beat out Google.
Interesting that Huawei denies any involvement in the lobbying of us companies in the government of the United States. Its partners, according to representatives of Huawei, with a similar initiative act on their own. On the other hand, we cannot say that Huawei did not respond to the persecution of the company in the American media. Representatives of the Chinese giant are with an interview and willing to give comments, trying to create a positive image of Huawei in the perception of the average American. The company withdrew from Washington’s expertise in relations with governmental structures and international trade last year when the pressure was not so noticeable.
At the same time, according to Bloomberg, sales of smartphones Huawei cautiously, watching the approach of the start of sales of the flagship smartphone Honor 20 in Europe, where they will begin the 21st of June. If the background of uncertainty with the future Android-Huawei solutions sales would be sluggish, the company is ready to quickly stop supplying new smartphones to the region. Outside of China Huawei smartphone sales could fall by 40-60 million units by the end of this year, according to its own estimates of the company. Desperate to strengthen its position in the international market, she is preparing to capture half of the Chinese at the end of this year. To achieve this goal, the company needs to increase sales in its home market in half compared with the first quarter of this year, and this would be not so easy.