TRUMP may just have killed Huawei's bid to become the world's top smartphone brand

Google is limiting Huawei's access to its automaton software package and apps once the Trump administration blacklisted the Chinese school firm.
The move is a huge blow to Huawei, whose goal is to be the top smartphone brand by the end of 2020.

Last week, the Trump administration barred yankee firms from commercialism to Huawei while not a United Stateslicense in an exceedingly vital increase of the trade war with China.

"We area unit yielding with the order and reviewing the implications," a Google spokesperson said on Monday. Huawei, the world's No. 2 smartphone seller, relies on a suite of Google (GOOGL) services for its devices, including the Android system and the Google Play app store.

The geographic region big is suspending abundant of that access, according to multiple reports, after Washington placed Huawei on a list of foreign firms deemed to undermine American national security or foreign policy interests.
Listed firms area unit barred from receiving parts and software package unless the trade is accredited.
Existing Huawei phones unaffected

Huawei can solely be able to use the general public version of automaton and can not be able to access apps and services from Google. The news was first reported by Reuters.

Google same shoppers United Nations agency already own Huawei smartphones are mostly unaffected for currently.

"Google Play and also the security protections from Google Play shield can still perform on existing Huawei devices," the spokesperson added, without providing further details.
The ban threatens Huawei's supply chain and could delay the rollout of 5G services around the world.
But the foremost immediate headache for Huawei is what the choice means that for future smartphone sales.
Most of Google's most popular products — like Gmail, YouTube and Google Maps — are banned in China, where Huawei offers domestic alternatives like Tencent's (TCEHY) WeChat and Baidu (BIDU) Maps.
But the company is hugely dependent on countries other than China.
Roughly 0.5 its smartphone sales last year were created outside China, according to research firms Canalys and IDC.

Huawei same it's "examining the implications from the United States of America actions for shoppers," adding that it will continue to provide "security updates and after sales services" for all existing smartphones and tablets, including its Honor budget brand.
China's response: 'Wait and see'

The Chinese school company same it's spent a minimum of 3 years performing on its own software package.

"Huawei has been building another software package simply just in case it's required," same Huawei proponentJohn Glenn Schloss.
"We would love to be able to continue operative within the Microsoft and Google ecosystems," he added.

Huawei licenses Microsoft's software package for its laptops and tablets. Microsoft (MSFT) did not immediately respond to a request for comment.

Beijing has repeatedly criticized the US-led campaign against Huawei, and referred to as the addition of the corporate to the trade blacklist a political move.

"China supports Chinese firms defensive their legitimate rights per laws," Lu Kang, a proponent for China's Ministry of Foreign Affairs, said at a press briefing on Monday.

"In terms of what measures either Chinese firms or Chinese government would take, please wait and see," he said.
Killing Huawei outside China?
Being cut off from the Google ecosystem would be a huge blow to Huawei's ambitions to overtake Samsung (SSNLF) as the world's biggest smartphone maker.

The consumer business — which incorporates smartphones, laptops, tablets and wearable devices like goodwatches — was the largest contributor to Huawei's earnings last year.
The division created nearly 349 billion yuan ($50 billion) in 2018, accounting for over forty fifth of revenue.

For the various users outside of China, being interrupt from Google's apps and services "kills the attractiveness of a Huawei phone," said IDC analyst Bryan Ma.

"It kills the usability of a Huawei phone outside of China, so rendering them dead within the water," he added.

Theoretically, Huawei can try to win over consumers with its competitive hardware and innovation, and then convince them to download Google apps after they buy a Huawei phone, said NicolePeng, an analyst with Canalys.

But proof shows that "after sales installation is extremely difficult for users, unless they know what they're doing," said Peng.
Moreover, when customers start finding out that Huawei can't get Google's ecosystem on their phones, "it will affect trust, they will question if anything is wrong with the device," she added.

Even if customers were able to severally transfer Google apps on Huawei phones, the phones may still not have access to so-called Google Mobile Services.

Many third-party apps, like ride-hailing and food delivery platforms, rely on services like Google Maps.
Most of these apps might now not be supported on Huawei devices, said IDC's Ma.

Without that access, "the Huawei phone may be a brick," he said.