• Skip to main content
  • Skip to secondary menu
  • Skip to primary sidebar
  • Skip to footer
  • Articles
  • News
  • Events
  • Advertize
  • Jobs
  • Courses
  • Contact
  • (0)
  • LoginRegister
    • Facebook
    • LinkedIn
    • RSS
      Articles
      News
      Events
      Job Posts
    • Twitter
Datafloq

Datafloq

Data and Technology Insights

  • Categories
    • Big Data
    • Blockchain
    • Cloud
    • Internet Of Things
    • Metaverse
    • Robotics
    • Cybersecurity
    • Startups
    • Strategy
    • Technical
  • Big Data
  • Blockchain
  • Cloud
  • Metaverse
  • Internet Of Things
  • Robotics
  • Cybersecurity
  • Startups
  • Strategy
  • Technical

Huawei to pack less of a punch in the new year after bruising 2020, analysts say

Reuters / 2 min read.
January 6, 2021
floq.to/mGPsL

By David Kirton

SHENZHEN, China (Reuters) – Huawei Technologies Co Ltd this year will likely see slower 5G business and push further into software, while hoping its smartphones get a reprieve from U.S. sanctions which last year struck the chip-reliant heart of its group, analysts said.

Limited access to high-end semiconductors means rationing during China’s network upgrade, they said, while the dissection of its mobile arm will send Huawei tumbling down rankings while it continues to develop a proprietary operating system.

China’s leading telecommunications equipment maker found itself on a U.S. trade blacklist in May 2019 due to national security concerns. Huawei has repeatedly denied it is a risk.

That effectively banned U.S.-based firms from selling Huawei essential U.S. technology. Last August, the ban was extended to foreign firms with U.S. business, reaching chief suppliers such as Taiwan Semiconductor Manufacturing Co Ltd (TSMC).

The change hit an Achilles heel as Huawei depends on TSMC to make advanced chips for its handsets, fifth-generation (5G) network base stations, servers, cloud computing and artificial intelligence products, said Paul Triolo, head of global tech policy at Eurasia Group. Stockpiles only last so long, he said.

“Passage of this death sentence does not involve a swift execution,” technology analyst Dan Wang said in a client note. “Instead, the process is much more like a slow strangulation.”

Huawei declined to comment.

Wang said Huawei will feel the impact most acutely in its consumer business, which brought in 54% of revenue in 2019.

In November, Huawei spun off budget smartphone line Honor in a sale founder Ren Zhengfei said would allow the brand to regain access to chips. Huawei could look to do the same with its premium lines this year, Triolo said.

Huawei was the world’s biggest smartphone maker as recent as the second quarter of 2020, but the Honor sale and chip shortage will likely take it out of the top six this year, said data firm Trendforce.

Its luck may change with the U.S. presidential inauguration of Joe Biden, from whom analysts expect more leniency towards Huawei’s smartphone business. The inauguration this month comes as Chief Financial Officer Meng Wangzhou discusses a deal with U.S. prosecutors over allegations of doing business with Iran.

In the meantime, Huawei will likely focus on the Harmony operating system it is developing for its smartphones after being cut off from Alphabet Inc’s Android, said Nicole Peng, VP of Mobility at consultancy Canalys.

Elsewhere in software, Huawei will likely pivot more towards services such as cloud computing and internet-of-things devices, though these are unlikely to offset slowdown in smartphones and telecommunication infrastructure, analysts said.

Huawei’s network business does have bright prospects, but with major markets such as Britain and Japan banning its equipment, it will likely focus on China, analysts said.

The company has enough chips to make around 500,000 5G base stations, said Jefferies analyst Edison Lee. Yet rather than use up that supply, the government will likely slow 5G introduction, taking “a middle-of-the-road approach to balance between expanding coverage and waiting for Huawei to catch up,” he said.

(Reporting by David Kirton; Editing by Christopher Cushing)

Categories: News
Tags: Cloud, cloud computing, Data, security, technology

About Reuters

Primary Sidebar

E-mail Newsletter

Sign up to receive email updates daily and to hear what's going on with us!

Publish
AN Article
Submit
a press release
List
AN Event
Create
A Job Post

Jobs

  • Software Engineer | South Yorkshire, GB - February 07, 2023
  • Software Engineer with C# .net Investment House | London, GB - February 07, 2023
  • Senior Java Developer | London, GB - February 07, 2023
  • Software Engineer – Growing Digital Media Company | London, GB - February 07, 2023
  • LBG Returners – Senior Data Analyst | Chester Moor, GB - February 07, 2023
More Jobs
Host your website with Managed WordPress for $1.00/mo with GoDaddy!

Tags

AI Amazon analysis analytics app Apple application Artificial Intelligence BI Big Data business CEO China Cloud Companies company content costs court crypto customers Data digital future Google+ government industry information machine learning market mobile Musk news Other public research revenue sales security share social social media strategy technology twitter

News

  • Elon Musk says his AI firm xAI is not raising funds ‘right now’
  • Disney begins integrating Hulu into Disney+ streaming service
  • New Mexico sues Meta, CEO Zuckerberg over child protection failures
  • Explainer-What are the EU’s landmark AI rules?
  • Bain Capital last bidder in race for SoftwareOne – sources
More News

Related Online Courses

  • Oracle Cloud Data Management Foundations Workshop
  • Data Science at Scale
  • Statistics with Python
More courses

Footer


Datafloq is the one-stop source for big data, blockchain and artificial intelligence. We offer information, insights and opportunities to drive innovation with emerging technologies.

  • Facebook
  • LinkedIn
  • RSS
  • Twitter

Recent

  • 5 Reasons Why Modern Data Integration Gives You a Competitive Advantage
  • 5 Most Common Database Structures for Small Businesses
  • 6 Ways to Reduce IT Costs Through Observability
  • How is Big Data Analytics Used in Business? These 5 Use Cases Share Valuable Insights
  • How Realistic Are Self-Driving Cars?

Search

Tags

AI Amazon analysis analytics app Apple application Artificial Intelligence BI Big Data business CEO China Cloud Companies company content costs court crypto customers Data digital future Google+ government industry information machine learning market mobile Musk news Other public research revenue sales security share social social media strategy technology twitter

Copyright © 2023 Datafloq
HTML Sitemap| Privacy| Terms| Cookies

  • Facebook
  • Twitter
  • LinkedIn
  • WhatsApp

In order to optimize the website and to continuously improve Datafloq, we use cookies. For more information click here.

Dear visitor,
Thank you for visiting Datafloq. If you find our content interesting, please subscribe to our weekly newsletter:

Did you know that you can publish job posts for free on Datafloq? You can start immediately and find the best candidates for free! Click here to get started.

Not Now Subscribe

Thanks for visiting Datafloq
If you enjoyed our content on emerging technologies, why not subscribe to our weekly newsletter to receive the latest news straight into your mailbox?

Subscribe

No thanks

Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.

Necessary Cookies

Strictly Necessary Cookie should be enabled at all times so that we can save your preferences for cookie settings.

If you disable this cookie, we will not be able to save your preferences. This means that every time you visit this website you will need to enable or disable cookies again.

Marketing cookies

This website uses Google Analytics to collect anonymous information such as the number of visitors to the site, and the most popular pages.

Keeping this cookie enabled helps us to improve our website.

Please enable Strictly Necessary Cookies first so that we can save your preferences!