ARM Losing Monopoly after Huwaei’s Ban

Huawei is a great name in the wireless technology industry. It is the number one telecom supplier and is the second biggest smartphone manufacturer right now. Last week was quite heavy on Huawei. Last Thursday Trump’s administration has put Huawei (Chinese manufacturer) on an Entity which commands all the US companies to perform any business with it. This certainly had a very perverse effect on the Huawei as most of the European countries seem to quit Huawei because they don’t want to afoul their relationship with the United States. The news has made great waves and disturbed many Huawei users.

ARM holdings, A 28-year-old establishment owned by Japan’s Softbank is behind every smartphone’s processor. A memo obtained by BBC showed that ARM holdings are also instructing its staff to cut all the business strings with Huawei over the designs which are utilizing the USA’s technology.

Although the implied restriction by the US is being suspended for 90 days, BBC said that ARM staff members are still not informed of resuming the operations with Huawei for the time being. This is obviously a very big shock for Huawei as well as ARM. One can certainly tell that neither of the party is pleased with this decision.

ARM at Risk of losing its Monopoly to Asian Rival:

ARM holdings are receiving a generous amount of license payment for its processors and also the Mali Graphic and Multimedia processors (Mali GPUs) which work as a base for the HI silicon Chipsets manufactured for Huawei. Being the second largest smartphone manufacturer in the World, there is no doubt about Huawei’s IoT and business of wireless devices. By complying with this order by the US government, ARM holding is going to see a major drop in its revenue. ARM holdings are also going to get hit by the long-term repercussions as Huawei would.

Well, this incident has certainly pushed China to multiply its efforts to build a strong domestic semiconductor industry. Already a major proportion of the Chinese manufactured products are ruling the market. This disaster may seem like a huge loss for Huawei and China but actually is making them strong and pushing they’re Made in China 2025 initiative on full throttle. Already China is known for using their own made products, and this decision by US administration has made them replace the western made high tech products with their own domestic manufactured products.

China is a massive phone market which is home to several successful smartphone brands like, OPPO, One Plus, Meizu, Xiaomi and Huawei as well. In the long term, we are seeing ARM losing its monopoly to an insurrectionary Asian rival. Well, this has been in a card for a long time now but this particular ban has speeded things up. As for Huawei, it seems like losing ARM access can seriously impact its long term innovation plan. Although the upcoming HiSilicon 985 doesn’t seem to get affected by the ban for now. But if this issue against the company prolongs, Huawei seems to lose a good amount of ground against its competitors (includes Samsung and Apple). Even if Huawei manages to create a new architecture, it certainly won’t be a competition to Android unless they get support from Google.

Networks are also avoiding Huawei:

This news of Huawei ban from the United States has severely damaged the business of Huawei. Network companies are also avoiding Huawei to its existence. As uncertainty has surrounded the company, major phone networks are also hesitating to collaborate with them. Even the gigantic phone networks of UK has dropped the company’s phone-sets from the launches of the 5G network.

EE and Vodafone are the two most popular and largest British mobile networks. Vodafone has been a constant figure in the UK’s mobile industry since 1985, whereas the EE which is the merger of T-Mobile and Orange, is catering connectivity to 31 million of the people all across it mobile and wholesale network. Both the companies had previously planned to include Huawei’s Mate 20X in the list of their 5G devices. But after this incident with Huawei both are having second thoughts about the decision and haven’t decided anything definite yet.

TNW told that a representative of EE has mentioned that they are currently holding Huawei’s 5G smartphone from coming into the market. We are working with Google and Huawei both right now in order to make sure that we are conducting the right level of testing and QA so that our customers have amazing of all experience with any smartphone we come up in the future. We’ll surely provide updates to any future smartphone in the due progress. It clearly indicates that EE is being reluctant in releasing any such device which might get cut off from the crucial security and performance updates. However, the company, for now, continues the sale of Huawei devices like the recently released P30.

Vodafone as compared to EE give quite a straight statement and told that they are temporarily pausing the pre-orders of Huawei 20X 5G as uncertainty is quite high right now. They also told that they will keep the situation under review before making any permanent decision.

Ultimately all this will contribute in the late release of the phone which is really not a big deal. But the real problem is that Huawei which has been closely involved in the 5G ecosystem will be shelved from 5G launch.

Well, this is all from the past week which was a total disaster for Huawei. If you want to stay tuned with the news get yourself a reliable ISP connection. Check Local Cable Deals right now to find yourself the best ISP in your area so you don’t miss out on any information.

About the author

James Oliver

James is a tech-savvy journalist who specializes in consumer electronics. He holds a degree in Electrical Engineering and has a knack for dissecting gadgets to their core. Whether it's smartphones, wearables, or smart home devices, James has got it covered. In his free time, he enjoys mountain biking.