Trump has sent Google on a High Risk journey

  wee eddie 02:24 20 May 2019

By denying Huawei access to Android, I think that Donald Trump has put Google's dominance of the market in jeopardy.

Huawei is large enough to design it's own OS and, if it ships in all their phones, it will occupy a sufficiently large sector of the market to attract the App designers in hoards, especially if they make their financial terms more generous than those of Apple or Google.

It could hit Apple's Sales as well

  Quickbeam 06:17 20 May 2019

Nothing wrong with the big two having to share a little more, but the windows phone system hasn't really taken off, and plenty of other OS have also fallen by the wayside. Who would have thought that Nokia wouldn't make it to the final with there own software.

  Forum Editor 09:18 20 May 2019

I very much doubt that Google's dominance is going to be jeopardised by this. Huawei has certainly made strides in terms of market share, but Samsung and Apple dominate the global markets - between them they currently have over 50% of the world's phone sales.

Things can change of course, but Samsung and Apple are not going to sit around twiddling their corporate thumbs watching Huawei eating into their share. Huawei will discover that bringing an entirely new operating system to the phone market is far from easy. Its sales are bound to be hit by Trump's latest move, and it may not be over yet.

  wee eddie 11:51 20 May 2019

FE, in a way, I agree with you. However if I were the CEO of Huawei, I would not be taking this threat to my Company, lying down.

My reaction would be to focus my whole R&D Department on developing my own OS, knowing that my sales were sufficiently large to create a market in its own right.

  Forum Editor 12:34 20 May 2019

Huawei has already developed its own OS - it saw the writing on the wall. It will undoubtedly find a market inside China, but that is not going to provide enough in terms of sales. The company needs to trade on the world market, and that's where it is going to encounter problems.

I have some sympathy for Huawei - the company makes excellent phones and mobile network infrastructure products. It is based inside the Peoples' Republic of China however, and it must obey its central government's dictats. The fact that it is a giant communications company, with access to some very sophisticated technologies has made it vulnerable to suspicion. The suspicion may be without foundation in fact, but it is unlikely to go away in the short to medium term.

Western governments are jumpy, and the American president is particularly jumpy. He fears Huawei's reported ability to use technologies embedded in phones and network equipment as a major threat to Homeland security.

  Quickbeam 12:39 20 May 2019

Is that well founded, or extreme paranoia fear FE?

  rickf 12:49 20 May 2019

Yeah, here comes the yellow peril again. Send in the gunboats!!

  Forum Editor 16:11 20 May 2019

Quickbeam Australia and New Zealand have already banned the use of Huawei 5G equipment in their mobile networks, and our own government issued a report in July which said that an investigation had revealed "shortcomings" in the Chinese firm's engineering processes, which it said "have exposed new risks in UK telecoms networks". When confronted with this information, Huawei admitted that 'there was room for improvement'. Germany, Japan and South Korea are also conducting investigations.

I wouldn't classify any of this as paranoia - it is governments acting to ensure the security of their nations' communications networks.

  Forum Editor 16:16 20 May 2019

rickf

This is the 21st century. China's track record over many years shows repeated incidents of cyber theft of sensitive data and intellectual property theft. Huawei could quite easily be ordered to carry out acts of sabotage against a foreign power's communication systems, and the company would have to comply. Ren Zhengfei, Huawei's founder has publicly stated that his company would never do anything to harm another nation, but who knows what pressure might be brought to bear? he is a Communist party member, and a former member of The People's Liberation Army - his first loyalty is to his country's government.

  rickf 17:17 20 May 2019

FE and the US has clean hands?? Look again.

  Old Deuteronomy 20:00 20 May 2019

The US never has clean hands but, Trump is, as FE says, very jumpy. Like a hyperactive kangaroo with a new pogo stick.

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