Huawei Has a Tough Road Ahead

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Huawei isn’t having a very jolly time in the international markets. The company has been banned from providing telecom equipment in several countries where it had a major presence. Further, last year, even Google had removed the GMS support for Huawei’s Android smartphones. Due to security concerns, multiple nations have removed Huawei from their plans of rolling out the 5G networks. This has hurt Huawei a lot because its major chunk of revenues came from supplying telecom equipment to various operators around the world.

Huawei’s Profits Dip in the UK After Ban

Post its ban in the UK; the Chinese telecom equipment supplier has seen a significant decline in the profits and revenues that it used to generate from the region. A while back, UK’s government had banned Huawei from supplying equipment that would be used for rolling out the 5G networks in the country.

That’s a big loss for Huawei. Further, the UK government has asked the local telecom service providers (TSPs) to remove Huawei’s equipment and its presence from the already live networks in the country in a phased manner by 2027. While this is a positive for other telecom equipment suppliers such as Nokia and Ericsson, it is hurtful for Huawei.

On top of this, the U.S. and India have also bluntly put that they don’t want the presence of Huawei in its mobile networks in any manner. The U.S. isn’t going to remove Huawei from its restricted list of companies anytime soon. It is the same with India. The Indian telecom operators have already started working with other companies, including Ericsson, Nokia, and Samsung, to conduct 5G trials and ignore Huawei.

The Indian government is going to come out with a list of trusted vendors very soon, and as per the recent developments, there is no way Huawei or ZTE would be a part of that list.

According to a FinancialTimes report, Huawei’s total sales dropped by 27% YoY to $1.28 billion in 2020, which resulted in very less profits of $51.3 million in the UK. The company has a tough road ahead, with multiple nations now getting worried about including Chinese companies in their telecom networks given the threat of national security. It will be interesting to follow how Huawei tackle’s these issues in the near future.

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Tanay is someone with whom you can chill and talk about technology and life. A fitness enthusiast and cricketer, he loves to read and write.


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