Huawei is at the center of an international trade dispute with the Trump administration. But most Americans have never even heard of it. So, what is Huawei and why does the president care so much?
Huawei's P30 smartphone, which sells for about $575. By Greg Bensinger Greg Bensinger Reporter covering algorithms and artificial intelligence Email Bio Follow May 22 at 5:18 PM Brittney Jones is something of a rarity among U.S. smartphone users. She prefers Huawei.
Huawei — pronounced “hwa-way” — commands a measly 0.03 percent of the U.S. market for handset sales, according to Gartner, and is available primarily on Amazon. But abroad it is a giant and, until a kerfuffle with the Trump administration this month, was on a clear path to overtake Apple as the second-largest seller of mobile phones in the world for the year.“They are as good or even better than Samsung, but for a lower price,” said Roger Entner, an analyst for Recon Analytics.
A 2012 congressional report contended Huawei’s telecom equipment, including gear essential for deploying 5G networks, posed a national security threat. As a result, U.S. carriers such as AT&T and Verizon haven’t offered Huawei’s mobile phones for sale. Other companies have also taken action against Huawei: As long ago as 2003, Silicon Valley firm Cisco sued the Shenzen-based company over claims that Huawei stole software code for routers and network switches.
A similar sanction last year on Chinese firm ZTE, over alleged trade violations, crippled it and forced it to accept a $1 billion fine, among other penalties. The device-maker’s U.S. smartphone market share has crumbled in recent years, analysts say, representing a tiny fraction of that of leaders Apple and Samsung.
Because of the U.S. ban on American companies supplying to Huawei — which could take effect in August after a 90-day reprieve — subsequent Huawei devices are likely to be without popular Google apps such as Gmail and YouTube. Huawei would have to seek out publicly available versions of the Android operating software, rather than getting them directly from Google.
Meanwhile, Silicon Valley firms could face skimpier sales of routers, computer chips and other components they typically ship to Huawei, which spent $11 billion buying from U.S. companies out of its roughly $70 billion budget last year.
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