Chinese manufacturing giant, Huawei, has been at loggerheads with the U.S over multiple issues. The American government claims that Huawei’s equipment is not safe. It believes that there are loopholes in its devices with which it spies for the Chinese government. However, Huawei has since denied all the allegations. The impact of Huawei’s fracas with the U.S. is that it is getting banned by America and its allies. However, not all allies of the U.S. are banning Huawei. Recently, a South Korean service provider had some positives for Huawei. LG U+ said that Huawei has proven the safety of its equipment. This implies that it does not intend to cut business ties with Huawei.
Huawei and LG U+ have been long-term partners. South Korean industry experts believe that if LG U+ decides to replace Huawei’s products, it will suffer a lot. Their conclusion put into consideration the business partnership between the two companies over the years.
Kim Jong-ki, a researcher at the Korea Institute of Industrial Economics and Trade, said: “If LG U+ switches to other 5G equipment suppliers, it will face equipment compatibility issues because the company uses Huawei’s products to provide 4G LTE services. Sudden changes will be costly and will delay its 5G deployment plans.”
However, the company currently does not use only Huawei’s 5G equipment. There are reports that in its 5G construction, it also patronizes Samsung Electronics, Finland’s Nokia and Sweden’s Ericsson.
An LG U+ spokesperson declined to disclose the share of Huawei’s equipment in all its equipment. However, he confirms that the company’s equipment is currently installed and deployed in the capital region and Gangwon Province. As LG U+ is trying to catch up with competitors in attracting 5G users, the company is facing increasing pressure.
RECENT REPORTS ON HUAWEI
Most recently, Huawei has been in the news for multiple reasons. Firstly, the U.K banned the Chinese company from its 5G network despite the fact that it will need up to £1 billion to completely eliminate Huawei from its network. Subsequently, the Chinese tech giant responded by saying the U.K is only bowing to the needs of the US and it is not about security issues. Furthermore, there were also reports that the U.S. is threatening to impose a visa restriction on Huawei employes. In this regard, Huawei’s disappointment is high. It claims that its employees work towards the development of technology globally. They do not deserve to experience such restrictions.
Despite all these, the company is doing well in all ramifications. Its businesses are thriving whether it is the smartphone, 5G, or its internet business. Most recently, it toppled Samsung to become the world’s largest 5G smartphone company in terms of shipment. According to South Korean SK securities estimate, Huawei’s 55 million shipments are ahead of Samsung’s 51 million units. This record is for the second quarter of 2020 (April – June). This is coming after it displaced Samsung as the top smartphone company globally for April and May 2020. Interestingly, there are still some major economies that are not banning Huawei despite the pressure from the U.S.
Furthermore, the tech giant has decided to fight back the U.S. and gained what it has lost from American companies. The Chinese manufacturer has a huge patent bank and no doubt, it must have cases against American companies if it looks closely. Now, American companies like HP, Verizon, and Cisco will be the first to meet Huawei in court. Most likely, these will not be the last American tech companies to battle it out with the Chinese manufacturer in court.