Who are the losers with Huawei… After blocking Google?

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Users in Europe, Google and Huawei are the biggest losers in the U.S. trade war with China and its recent fallout has been to stop U.S. company cooperation with Huawei, analysts say.

Huawei phone users in China do not use the Google Store, and Huawei devices are banned in the U.S. market, making the biggest affected by this action the world’s users, especially Europeans.

According to analysts, China’s Huawei–which suffers from U.S. sanctions–could see a quarter of the shipments this year and face the prospect of the disappearance of its smartphones from international markets.

A analysis of the VIBON research and analysis company predicts that the smartphone shipments of Huawei-the world’s second largest smartphone company in volume-will decline by 4 to 24% in 2019 if the United States embargo continues.

“Huawei may be eliminated from the smart phone market in Western Europe next year if you lose access to Google,” said Linda Sui, director of smart phone strategies at Strathjack.

The Huawei phone shipments are expected to drop by another 23% next year, but they believe the company can survive because of the sheer size of the Chinese market.

Huawei acquires about 30% of the European market according to the company  “EMC ” research, and the company shipped 208 million phone last year, half of it to markets outside China, and the company considers Europe the most important market for its smartphones.

Stewart Randall, who traces the chip industry in Shanghai’s Interlink consulting firm, said Huawei would probably need to dispense with thousands of people and “disappear as a global player for some time.”

Analysts said the potential buyers of Huawei phones are likely to be transformed into sophisticated devices from Samsung and Apple, or buy medium phones from their local competitors, Obuu and Vevo.

Google’s not better off.

Research firm Noumra Antinet estimated the loss of Google because of its decision to stop cooperation with Huawei by about 425 million dollars of annual revenue.

The company says that the withdrawal of the Google store from Huawei devices will deprive Google of fees of up to 30% of all transactions.

INSTAT puts the potential total range of sales lost from the Google store between 375 million and 425 million dollars.

Antinet has estimated the current Huawei users to be about 500 million smartphone users worldwide, but 52% of them are in China, where Google Play is not available.

Therefore, according to Antinet estimates, Google will lose sales of its stores in Europe and Asia (except China), where it benefits from sales of applications today.

Google made seven billion dollars of Google Play global sales in 2018, according to Antinet estimates that Huawei’s contribution to this amount is about 388 million dollars.

Europe is the largest engine of this revenue, with Google accounting for 190 million dollars of Google Play’s sales on Huawei devices last year.

Huawei users in Asia (excluding China) contributed about 137 million dollars in Google store sales, according to the report.

For Google, which collected more than 130 billion dollars in revenue in 2018, the CEO of “Woodbush Securities ” Dan Ives says that these future losses are “a double fault” of the giant technology company, and that the final consequences may be worse.

Source: Websites


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