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Top 5 things to know about the Huawei phone ban

By Finserv MARKETS - Aug 31,2019
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Huawei is the world’s No. 1 telecom supplier and No. 2 smartphone manufacturer. It took over Apple’s second position last year. However, the Chinese telecom giant has run into its biggest crisis to date. Huawei has been banned from the US over security concerns and other countries like Japan and Australia seem to be following suit.

The main reason behind this ban is said to be that Huawei is funded by the Chinese government and its equipment could be used to spy on other countries and companies. The US had banned Huawei networking equipment in 2012. However, it was added to the US Department of Commerce – Bureau of Industry and Security Entity List on May 15, 2019 for posing a national security risk, after the US president Donald Trump passed an order, banning Huawei from US communications networks.

Over the last few months, Huawei equipments are being scrutinized increasingly, with more and more of countries imposing a ban on the use of its networking equipment. Huawei mobile phones are practically unseen in the US now, however, Huawei mobile phones continues to sell in the rest of the world including India while the company continues to maintain its innocence towards any wrongdoings.

We’ll analyze how this ban in the US will affect India and the rest of the world:

  1. While Huawei mobile phones continue to sell in India and are available in other countries as well, Facebook has recently decided to stop letting Huawei preinstall its apps on Huawei smartphones after Facebook was questioned over a report that was revealed in 2018 that it has had given special access of user data to Huawei. Google was also called out for its relationship with Huawei last year.
  2. Huawei continued to ship smartphones across the world. While Japan was reported to stop buying from Huawei and ZTE, Australia banned Huawei from its 5G rollout in December 2018. Meanwhile, Huawei’s smartphones shipment exceeded 200 million at the end of 2018 from a reported 100 million in July 2018.
  3. In January 2019 a Huawei employee in Poland was arrested over allegations of spying. Meanwhile, China threatened Canada of consequences if it bans Huawei’s 5G tech. The Huawei chairman went on to say that they will sign a “no-spy” deal with the US. He also stated that Huawei was ready to sell its 5G chips to Apple. As per reports, the US withdrew the demand for a ban on Huawei in Germany. Huawei also stated that it was slated to replace Samsung’s position in the smartphone world by 2020.
  4. Huawei launched its foldable smartphone in Feb 2019, the Mate X, following which Samsung settled its patent dispute with Huawei after 2 years of locking horns. The UK also now considers Huawei products as ‘increased risk’ as opposed to their earlier statement of being a ‘manageable risk’. Vodafone also found security risks in Huawei equipment.
  5. In May 2019, Huawei reported an increase in smartphone sales by 50% while the US government effectively banned Huawei following a national security order. Subsequently, Google will exclude Huawei smartphones from Android updates in the future. Following this, amidst all this chaos, Huawei has started to develop its own OS in case Android or Windows is not available in the future for its smartphones. The OS may be called ‘Hongmeng’. Huawei continues to launch its new products and announce that it has set new goals to overtake positions of Samsung and Apple.

Huawei recently launched its latest smartphone Huawei P30 Pro which is available for sale since April 2019. It is priced at a 71,990 INR and is available online with excellent offers and mobile finance on the Bajaj Finserv EMI Store

Whether its a power play between companies or countries, with so much going on between China and other countries over security, with the onset of 5G trials, Huawei’s security issue bothers the Indian government as well. It is being said that the Department of Telecom will consult with the PMO to confirm whether Huawei will be allowed to participate in 5G trials in India. Having said that, 5G technology is something which the world looks forward to. Meanwhile, amidst security concerns, Huawei mobile phones are still available in many countries including India. The Bajaj Finserv EMI Store offers same-day delivery, zero down payment and No Cost EMIs to purchase a wide range of consumer electronics goods & smartphones with Bajaj Finserv EMI card.


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