Huawei Technologies’ shift from smartphones to cloud technologies and corporate solutions is threatened by US CPU constraints.
At this year’s Mobile World Congress in Barcelona, which concluded on Thursday, the company claimed the largest space of any exhibitor, occupying 9,000 square meters at the entrance.
Huawei’s Return On The Market
Presenters walked guests through the Chinese firm‘s endeavors into digitizing ports and other infrastructure, as well as its work in health tech. One British employee of a software development company remarked that the innovative technology on show was unlike anything he had ever seen.
The Huawei demonstrations at the four-day event lacked only one thing: new smartphones. In past years, the mobile phone launches of the corporation had been showcased at the expo.
Due to US trade restrictions imposed on Huawei, consumer electronics seldom made an appearance at trade shows in 2018.
The US Commerce Department imposed export limitations on suppliers for the first time in 2019, citing national security threats related to the likelihood that the Chinese government could access sensitive data.
In September 2020, Washington prohibited the export of microchips created in the United States. Huawei’s mobile operations were crippled when it lost access to high-performance chips for 5G-compatible devices. In August 2019, Huawei sold over 1 million preorders for its first 5G devices.
There is no 5G equipment in stock, a retail source in Guangzhou stated. The store stocked only 4G phones. Huawei sold Honor to escape US sanctions in November 2020. The revenue peaked in 2020 and then declined. In 2021, consumer products, including cell phones, produced fifty percent of the income. More than half of sales came from the sector.
Huawei reorganized its business-to-business enterprises into corps and extended its cloud services. Huawei is developing automotive component and system businesses. Huawei’s revenue appears to have steadied after this restructuring. Sales were 636.9 billion yuan ($92.1 billion) last year, unchanged from 2021.
The rotating chairman, Eric Xu, declared in December that 2023 will be the first year in which business as normal will restart with US restrictions. It is essential. While Huawei recovers, the United States is considering more sanctions.
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US Might Halt Huawei Exports
Huawei can now import off-the-shelf products on a case-by-case basis after the Commerce Department added them to the Entity List.
According to US media reports, the Biden administration is considering a rule that would bar American corporations from doing business with Huawei and selling to foreign suppliers. Intel and Qualcomm’s Huawei sales licenses may be revoked.
Congress has determined that the export control regime is overly lax. China’s use of spy balloons to penetrate US airspace continues to haunt the Biden administration.
In addition, Russia buys Chinese semiconductors for use in anti-Ukraine weaponry.
The Biden administration has responded by tightening sanctions.
According to US media, further sanctions will bring Huawei to its demise. Huawei manufactures, among other goods, televisions, personal computers, and smartwatches.
The export of these commodities would be restricted by US trade laws. The cloud and other services should experience less difficulty. The base station sector of Huawei generated over forty percent of the company’s overall revenue in 2021. Additional sanctions might be catastrophic.
Huawei controls 30 percent of the base station market. The company provides 5G services to carriers worldwide. If Huawei is subject to sanctions across the US, It would make securing components more difficult and hinder base station maintenance, according to an insider.
The founder and CEO of Huawei, Ren Zhengfei, exhibited a photograph of a severely damaged Soviet Ilyushin aircraft that returned to Shenzhen in May 2019. He compared Huawei’s troubles in the United States to the fighter plane.
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