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Huawei Shifts Focus to Existing Markets After Failing to Enter US Market

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After a series of setbacks in the US, Huawei is finally moving on.

The Chinese manufacturer has decided to refocus on its existing markets instead of attempting to enter the US market anymore. One of the CEOs, Eric Xu, was quoted saying that it was "beyond myself to clearly explain what is going on between the two countries." The CEO said that the company will be focusing on its existing customers this time around.

This decision comes after numerous times that the US government called the Chinese company a "national security threat" over its potential dominance of next generation 5G technologies. Shortly after, AT&T and Verizon announced that they have ended potential deals with the Chinese manufacturer. Just last month, Best Buy joined in on the issue and announced they would no longer sell Huawei phones. This led many to believe that the US government had something to do with this.

Along with its decision to move on from trying to enter the US market, Huawei has laid off five high-level US employees. One of these employees is William B. Plummer, who has been working hard at smoothening the company's ties with the US government.

At a Huawei analyst event held in China early this week, Xu acknowledged that the US market has blocked off Huawei. The CEO said that "with some things, when you let them go, you actually feel more at ease."

Despite all these roadblocks, Huawei continues to press on as the largest supplier of network equipment in the world. The company announced that it will be releasing its first 5G smartphone in the third quarter of 2019. Another important announcement made by the Chinese brand is its 5G-oriented SingleRAN Pro solution, which will support 2G, 3G, 4G, and 5G technology. For its part, Huawei plans to lighten the spotlight on 5G. There are plenty of other products being offered by the Chinese manufacturer. 5G just happens to be a "natural evolution of technology from 2G to 3G to 4G."


Huawei is not the only company that the federal government is targeting. Just yesterday, the US Department of Commerce banned American companies from selling components to ZTE, another Chinese manufacturer. In March, it was also announced that tariffs would be imposed on as much as $60 billion worth of goods, specifically Chinese tech.

The issue about national security first emerged in 2012, when a congressional report noted that Huawei's equipment can be used to spy on the US government and with its citizens. That year, Huawei spent $1.2 million on lobbying this report. In 2017, the company spent only $60,000. Ever since then, it has been getting worse for the Chinese company.

Perhaps the decision to move on from the US market is wise for the Chinese manufacturer at this time.



Source: Fierce Wireless

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16 comments:

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  1. Does this mean that Huawei and ZTE will no long be sold by any USA sellers other than Best Buy ?

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    1. Best Buy has already said they will stop carrying Huawei. ZTE and Huawei will likely pull out of the US market so there won't be any new models with US warranties to sell anyway.

      Other retailers like Amazon, Newegg and B&H might continue selling non-US versions of Huawei flagships as well as old stock Huawei and ZTE phones. If the carriers dump their inventory of prepaid ZTEs amd Huaweis as unlocked phones on the secondary market, there will be lots of old stock.

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  2. the government will do anything to help apple keep selling those thousand dollar iPhones huh?

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    1. Wow Dennis, no dissention allowed.. There goes another one.

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  3. huawei won't install backdoors on its phones so the nsa and cia caan track your calls, texts, and data. that dioesn't even count state and local cops armed with stingers. as usaul, the real reasons the feds do something are hidden from the taxpayers.

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    1. There's no space left after all the Chinese malware and other crap.

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  4. oh come on. it's not the end of the world for huawei. but yeah it depends on if huawei permanently stops the production assembly lines for US-specific versions of the phones. amazon is still selling US versions of the phones. honor 7x. huawei mate se. huawei mate 10 pro. when the amazon inventory is out, then see if any new inventory comes in to be sold, and then you will know huawei is listening to customer demand for the phones. and so what to the political heat. have see the amazon go out of stock, and then they're back on sale like for the honor7x within weeks. that inventory cycle could continue. but the US-versions of the phones may possibly become more expensive like an extra $50+ on top of existing prices because it will be the customers who will pay on any tariffs that trump may possibly extend to huawei phones.

    but if the assembly line stops and no new inventory, then it's back to buying international versions of their phones and seeing if they have the right LTE bands on them. huawei will most likely reserve their much more deluxe high end models like the huawei p20 pro and their porsche huawei mate rs models etc for asia and europe. so sad. too bad.

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  5. Stick to vendors who have better respect for us law and your privacy.

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    1. I agree completely. Don't buy a phone that has an OS and apps that depend on selling your personal information as the business model.
      Buy from companies who make money by selling you the product. Their loyalty is to you, not advertisers.

      Delete
  6. Huawei may very well continue to make phones that fully work with U.S. LTE bands even if they aren't technically U.S. specific versions.

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    1. Carrier-certified voLTE is going to be a problem. As it is voLTE isn't guaranteed to work if you, for example, unlock your non-iOS AT&T phone and bring it to T-Mobile.

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    2. Maybe, maybe not. VoLTE isn't exactly widely implemented across MVNOs at least, anyway.

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  7. I'm starting to think Apple may be the safest way to go as far as security, pick your poison I guess)

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    1. Only if you naively have absolute faith in a still-vulnerable supply chain.

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  8. And it goes with saying do NOT get a spyware-ridden BLU phone.

    I pursuaded my local Best Buy to take them off the shelves.

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